wycode

Cross references. —

For provision prohibiting special or local laws chartering insurance companies, see art. 3, § 27, Wyo. Const.

As to Uniform Simultaneous Death Act, see §§ 2-13-101 through 2-13-107 .

As to applicability of Uniform Simultaneous Death Act to contracts of insurance, see § 2-13-102 .

For provision that felonious taking of life precludes insurance benefits, see § 2-14-101 .

As to arson caused to collect insurance, see §§ 6-3-101 , 6-3-102 .

For provisions as to professional liability insurance for peace officers, see § 9-2-1017 .

For provision authorizing department heads of the state to obtain group insurance plans for department employees, see § 9-3-201 .

For provisions as to state employees' group health insurance, see §§ 9-3-202 through 9-3-218 .

For provision requiring insurance on stored grain, see § 11-11-112 .

For authority of cities and towns to carry liability insurance, see § 15-1-104 .

For provision that benefits paid under policemen's or fireman's pension funds shall remain suspended during the receipt of worker's compensation or insurance, see §§ 15-5-208 , 15-5-313 .

As to use of insurance money for rebuilding state structures, see § 16-6-109 .

As to liability insurance covering school vehicles, see § 21-3-126 .

As to accident insurance for pupils, see § 21-3-127 .

For provisions authorizing school districts to obtain liability insurance, see § 21-3-128 .

As to school district obtaining insurance from companies authorized to do business in the state, see § 21-3-130 .

For provision authorizing school districts to provide insurance benefits for teachers and other employees, see § 21-7-301 .

As to Motor Vehicle Safety-Responsibility Act generally, see chapter 9 of title 31.

As to uninsured motorist coverage, see chapter 10 of title 31.

As to Motor Club Services Act, administered by the insurance commissioner, see chapter 14 of title 31.

For duty of department of transportation to require motor carriers to deposit with it policies of insurance or other securities, see § 31-18-209 .

For provision as to powers and duties of custodian of life insurance policies under the Uniform Transfers to Minors Act, see § 34-13-125 .

For Uniform Commercial Code provisions as to cost of goods, insurance and freight, see § 34.1-2-320.

As to warehouseman's lawful claims for insurance on goods deposited, see § 34.1-7-209.

For provision as to hospital procuring liability insurance, see § 35-2-114 .

For provision as to inapplicability of the Uniform Consumer Credit Code to the sale of insurance, see § 40-14-121 .

As to insurance generally under the Uniform Consumer Credit Code, see §§ 40-14-401 through 40-14-453 .

For provision as to discovery of insurance agreements, see Rule 26, W.R.C.P.

As to form of complaint on insurance policy under Rules of Civil Procedure, see Form 17, Appx. of Forms, W.R.C.P.

Revision of title. —

Ch. 190, Laws 1983, revised this title, generally amending, renumbering and repealing the provisions thereof. No detailed explanation of the changes made by the 1983 act has been attempted, but, where appropriate, historical citations to former provisions have been added to corresponding sections, and annotations from cases decided under former provisions have been placed under comparable sections where it was felt they would be helpful. See the Tables of Comparative Sections in Volume 11.

Section 2, ch. 190, Laws 1983, reads: “Any other act adopted by the Wyoming legislature during the same session in which this act is adopted shall be given precedence and shall prevail over the amendments in this act to the extent that such acts are in conflict with this act.”

Sections 1 to 672, ch. 136, Laws 1967, also revised title 26, amending, renumbering and repealing the provisions thereof.

Purpose of act. —

Laws 1997, ch. 120, § 3, effective July 1, 1997, provides: “The amendments made by this act to the Wyoming health insurance pool are intended to provide an acceptable alternative mechanism meeting the requirements of section 2744 of the federal Public Health Service Act and the requirements of the federal Health Insurance Portability Act of 1996. The governor shall advise the Secretary of the Department of Health and Human Services that the state has enacted necessary legislation to provide for the implementation of an acceptable alternative mechanism designed to meet those requirements.”

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance § 1 et seq.

Policies as contracts in writing within statute of limitations, 3 ALR2d 809.

Insurer's demand for additional or corrected proof of loss as waiver or estoppel as to right to assert contractual limitation provision, 15 ALR2d 955.

Repayment or tender of unearned premium as condition precedent to exercise by insurer of right to cancel policy, 16 ALR2d 1200.

Avoidance of release of claim for personal injuries on ground of misrepresentation as to matters of law by tort-feasor or his representative insurer, 21 ALR2d 272.

Fraud or misrepresentation by insured's agent after loss as within provision avoiding policy for fraud or attempted fraud of insured, 24 ALR2d 1220.

Insurer's waiver of or estoppel to assert contractual limitation provision, 29 ALR2d 636.

Applicability of contractual limitation of time to action to recover unearned premium retained by insurer upon cancelation of policy, 29 ALR2d 938.

Rights and remedies arising out of delay in passing upon application for insurance, 32 ALR2d 487.

Effective date of insurance policy as between premium date stated in policy and later date either of approval, acceptance or delivery of policy or of payment of premium, 44 ALR2d 472, 37 ALR3d 933.

Denial of liability as waiver of proofs of loss required by insurance policy, 49 ALR2d 161.

Receipt of check for insurance premium as preventing forfeiture for nonpayment, 50 ALR2d 630.

Injunction to prevent insured from settling suit against wrongdoer to detriment of insurer, 51 ALR2d 697.

Consideration for rider, endorsement or other modification of insurance policy to change risks covered, 52 ALR2d 826.

Time for payment of insurance premium where last day falls on Sunday or holiday, 53 ALR2d 877.

Payments on other than annual basis as satisfying provision for increase of insurance benefits based on payment of premiums in advance, 83 ALR2d 696.

Insurers' denial of renewal of policy, 85 ALR2d 1410.

What amounts to contest within contemplation of incontestable clause, 95 ALR2d 420.

Doctrine of estoppel or waiver as available to bring within coverage of insurance policy risks not covered by its terms or expressly excluded therefrom, 1 ALR3d 1139.

Choice of law in construction of insurance policy originally governed by law of one state as affected by modification, renewal, exchange, replacement or reinstatement in another state, 3 ALR3d 646.

Insurance agent's statement or conduct indicating that insurer's cancellation of policy shall not take effect as binding on insurer, 3 ALR3d 1135.

Insurer's acceptance of defaulted premium payment or defaulted premium note as affecting liability for loss which occurred during period of default, 7 ALR3d 414.

Dividends as preventing lapse of policy for nonpayment of premiums, 8 ALR3d 862.

Clause requiring notice of claim within specified time or as soon as reasonably possible or the like, 17 ALR3d 530.

Insurer's statements as to amount of dividends, accumulations, surplus or the like as binding on insurer or merely illustrative, 17 ALR3d 777.

Construction of express insurance policy provision restricting insurer's right to cancel or otherwise terminate coverage, 19 ALR3d 1429.

Incontestable clause as affected by reinstatement of policy, 23 ALR3d 743.

What constitutes “serious illness,” “serious disease” or equivalent language used in insurance application, 28 ALR3d 1255.

Notice or proof of loss under one policy as notice or proof of loss under another provision of same policy or another policy issued by same insurer, 29 ALR3d 856.

Reformation of insurance policy to correctly identify risks and causes of loss, 32 ALR3d 661.

Validity and construction of statutes relating to style or prominence with which provisions must be printed in insurance policy, 36 ALR3d 464.

Insurer's tort liability of acts of adjuster seeking to obtain settlement or release, 39 ALR3d 739.

Insurer's failure to pay amount of admitted liability as precluding reliance on statute of limitations, 41 ALR3d 1111.

Person to whom renewal premium may be paid or tendered so as to bind insurer, 42 ALR3d 751.

Conclusiveness of recitation, in delivered insurance policy, that initial premium has been paid, 44 ALR3d 1361.

Construction and effect of arrangement under which insurance premiums are paid automatically via insurer's draft on insured's bank account, 45 ALR3d 1349.

Insurer's liability for consequential or punitive damages for wrongful delay or refusal to make payments due under contracts, 47 ALR3d 314.

Materiality and effect of false statement by insurance applicant as to previous insurance cancellations or rejections, 66 ALR3d 749.

Right of insured under individual policy to coverage afforded by group policy from which he directly transferred on termination of his employment, 66 ALR3d 1192.

Risks and causes of loss covered or excluded by aviation liability policy, 86 ALR3d 118.

Insured's right to recover attorneys' fees incurred in declaratory judgment action to determine existence of coverage under liability policy, 87 ALR3d 429.

What constitutes operating, riding in, or descending from, aircraft within life or accident policy provisions relating to aeronautics, 88 ALR3d 1064.

Performance by one insurer of its duty to defend as excusing failure of other insurers equally obligated to defend, 90 ALR3d 1199.

When does statute of limitations begin to run upon an action by subrogated insurer against third-party tort-feasor, 91 ALR3d 844.

Liability insurance coverage as extending to liability for punitive or exemplary damages, 16 ALR4th 11.

Allocation of defense costs between primary and excess insurance carriers, 19 ALR4th 107.

Liability of premium finance agency to insurer for consequences of ineffectual cancellation of policy, 26 ALR4th 346.

Event as occurring within period of coverage of “occurrence” and “discovery” or “claims made” liability policies, 37 ALR4th 382.

Necessity or permissibility of naming no-fault insurer as defendant where insured automobile owner or operator is not liable for economic losses under no-fault insurance law, 40 ALR4th 858.

Actual receipt of cancellation notice mailed by insurer as prerequisite to cancellation of insurance, 40 ALR4th 867.

Motorist having “no-fault” insurance affording no liability coverage in circumstances as “uninsured” or “underinsured” motorist under damaged party's insurance, 40 ALR4th 1202.

Statutory or policy exclusion, from automobile no-fault coverage, of property damage covered by homeowner's policy of household member who is owner, registrant or operator of vehicle involved, 41 ALR4th 973.

Construction and effect of provisional or monthly reporting inventory insurance, 81 ALR4th 9.

Liability of insurer, or insurance agent or adjuster, for infliction of emotional distress, 6 ALR5th 297.

Insurer's liability to insurance agent or broker for damages suffered as result of insurer's denial of coverage or refusal to pay policy proceeds to insured, 6 ALR5th 611.

Admissibility of polygraph or similar lie detector test results, or willingness to submit to test, on issues of coverage under insurance policy, or insurer's good-faith belief that claim was not covered, 7 ALR5th 143.

Validity of state statute prohibiting health providers from the practice of waiving patients' obligation to pay health insurance deductibles or copayments, or advertising such practice, 8 ALR5th 855.

Prospective juror's connection with insurance company as ground for challenge for cause, 9 ALR5th 102.

Validity, construction, and effect of “regulatory exclusion” in directors' and officers' liability insurance policy, 21 ALR5th 292.

Uninsured and underinsured motorist coverage: validity, construction, and effect of policy provision purporting to reduce coverage by amount paid or payable under workers' compensation law, 31 ALR5th 116.

Availability of interpleader under Federal Interpleader Acts and Rule 22 of Federal Rules of Civil Procedure to insurance company for resolving dispute as to insurance policy, 19 ALR Fed 166.

What constitutes impairment of proposed intervenor's interest to support intervention as matter of right under Rule 24(a)(2) of Federal Rules of Civil Procedure in actions involving insurance, 75 ALR Fed 869.

Construction and application of preemption exemption, under Employee Retirement Income Security Act (29 USC § 1001 et seq.), for state laws regulating insurance, banking or securities (29 USC § 1144(b)(2)), 87 ALR Fed 797.

Exemption or immunity from federal antitrust liability under McCarran-Ferguson Act (15 USC §§ 1011-1013) and state action and Noerr-Pennington Doctrines for business of insurance and persons engaged in it, 116 ALR Fed 163.

44 C.J.S. Insurance § 1 et seq.

Chapter 1 Scope of Code

Joint resolution. —

Laws 2003, Senate Joint Resolution No. 1, requests Congress to equalize the tax treatment of employer-provided and individually purchased health insurance by creating a tax credit for the full amount of insurance purchased by individuals since the high cost of health insurance has created a large number of uninsured citizens in the United States and the State, those without health insurance are less likely to receive adequate health care, insurance purchasing decisions are to a large extent made by employers and not insurance beneficiaries, overreliance on employer-provided health insurance impedes worker mobility, spiraling health care costs are in part caused by a lack of active consumer participation in health care markets, and employers can deduct the full cost of employee health insurance as a business expense, while individuals may not.

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance §§ 23 to 68.

44 C.J.S. Insurance §§ 74 to 84.

§ 26-1-101. Short title.

This act [title 26] constitutes the Wyoming Insurance Code.

History. Laws 1967, ch. 136, § 1; W.S. 1957, § 26.1-1; Laws 1983, ch. 190, § 1.

Stated in

State Farm Mut. Auto. Ins. Co. v. Wyoming Ins. Dep't, 793 P.2d 1008, 1990 Wyo. LEXIS 61 (Wyo. 1990).

Cited in

Moriarity v. State ex rel. McBride, 899 P.2d 879, 1995 Wyo. LEXIS 131 (Wyo. 1995).

Am. Jur. 2d, ALR and C.J.S. references. —

When is medical expense “incurred” under policy providing for payment of medical expenses incurred within fixed period of time from date of injury, 65 ALR5th 649.

§ 26-1-102. Definitions.

As used in this act:
1. “Adjuster” means any individual who, for compensation as an independent contractor, or as the employee of an independent contractor, or as a salaried employee of an insurer, or for fee or commission, on behalf of the insurer investigates and negotiates settlement of claims arising under insurance contracts, except that an attorney-at-law who is licensed to practice law in this state, or a licensed agent or broker who adjusts or assists in adjustment of losses arising under policies issued through that broker or by the insurer represented by that agent, is not an adjuster for the purposes of chapter 9 of this code;
2. “Agent” means any individual, firm or corporation appointed by an insurer to solicit applications for insurance or annuities or to negotiate insurance or annuities on its behalf;
3. “Alien” insurer means an insurer formed under the laws of any country other than the United States of America or any of its states;
4. “Annuity” means a contract under which obligations are assumed with respect to periodic payments where the making or continuance of all or some of the payments, or the amount of the payments, is dependent upon the continuance of human life, and a contract which includes extra benefits of the kinds set forth in W.S. 26-5-102 and 26-5-103 is an annuity if the extra benefits constitute a subsidiary or incidental part of the entire contract;
5. “Authorized” insurer means an insurer authorized by a subsisting certificate of authority issued by the commissioner to transact insurance in this state;
6. “Broker”, except as used in chapter 11 of this code, means a resident individual, firm or corporation organized under the laws of the state of Wyoming who, not being an agent of the insurer, as an independent contractor and on behalf of the insured, for compensation or fee solicits, negotiates or procures insurance or the renewal or continuance thereof for insureds or prospective insureds, other than himself;
7. “Charter” means articles of incorporation, agreement or association, charter granted by legislative act, or other basic constituent document of a corporation or the power of attorney of the attorney-in-fact of a reciprocal insurer;
8. “Commissioner” means the insurance commissioner of this state;
9. “Department” means the department of insurance of this state, unless the context otherwise requires;
10. “Domestic” insurer means an insurer formed under the laws of Wyoming;
11. “Domicile” of an insurer means:
  1. As to Canadian insurers, Canada and the province in which the insurer’s head office is located;
  2. As to other alien insurers authorized to transact insurance in one (1) or more states as provided in W.S. 26-3-130 ;
  3. As to alien insurers not authorized to transact insurance in one (1) or more states, the country under the laws of which the insurer was formed;
  4. As to all other insurers, the state under the laws of which the insurer was formed.
12. “Foreign insurer” means an insurer formed under the laws of any jurisdiction other than this state and includes an “alien” insurer unless otherwise distinguished by the context;
13. “General lines agent” means an agent who transacts any of the following kinds of insurance:
  1. Property insurance;
  2. Casualty insurance;
  3. Surety insurance;
  4. Marine and transportation insurance;
  5. Disability insurance, if transacted for an insurer also represented by the same agent as to property or casualty insurance.
14. “Industrial life insurance” means life insurance written under policies of face amount of one thousand dollars ($1,000.00) or less bearing the words “industrial policy” imprinted on the face of the policy and under which premiums are payable monthly or more often;
15. “Insurance” means a contract in which one undertakes to indemnify another against loss, damage or liability arising from determinable hazards or fortuitous occurrences or to pay or allow a specified amount or determinable benefit in connection with ascertainable risk contingencies;
16. Except as otherwise provided in W.S. 26-22-501 through 26-22-503 , “insurer” means any person engaged as indemnitor, surety or contractor in the business of entering into contracts of insurance or of annuity;
17. “Life agent” means an agent who transacts life insurance or annuity business and includes also the transaction of disability insurance on behalf of an insurer for whom the agent is also licensed as to life insurance;
18. “Managing general agent” means a person, firm, association or corporation meeting the definition of managing general agent under W.S. 26-46-101 ;
19. “Mutual insurer” means an incorporated insurer without capital stock and the governing body of which is elected by its policyholders, except certain foreign insurers which the commissioner finds to be organized on the mutual plan under the laws of their state or province of domicile, but having temporary share capital or providing for election of the insurer’s governing body on a reasonable basis by members or by policyholders and others are not excluded as mutual insurers;
20. Except as used in chapter 31 of this code, “person” means an individual, insurer, company, association, organization, Lloyd’s insurer, society, reciprocal insurer or interinsurance exchange, partnership, syndicate, business trust, corporation, agent, general agent, broker, adjuster and any legal entity;
21. “Policy” means the written contract of or written agreement for or effecting insurance, by whatever name called, and includes all clauses, riders, endorsements and papers which are a part thereof;
22. “Premium” means the consideration for insurance, by whatever name called, and any assessment, membership, policy, survey, inspection, service or similar fee or other charge in consideration for an insurance contract is part of the premium;
23. “Reciprocal insurance” means insurance from an interexchange among persons, known as subscribers, of reciprocal agreements of indemnity, the interexchange being carried out through an attorney-in-fact common to all persons involved;
24. “Reciprocal insurer” means an unincorporated aggregation of subscribers operating individually and collectively through an attorney-in-fact to provide reciprocal insurance among themselves;
25. Repealed by Laws 2011, Ch. 60, § 3.
26. Repealed by Laws 2001, Ch. 201, § 5.
27. “State” means any state, district, territory, commonwealth or possession of the United States of America and the Panama Canal Zone if used in a context signifying a jurisdiction other than the state of Wyoming;
28. “Stock insurer” means an incorporated insurer with its capital divided into shares and owned by its stockholders;
29. “Surplus” in any determination or statement of an insurer’s financial condition means the excess of the insurer’s assets over its liabilities as ascertained in accordance with chapter 6 of this code;
30. “Transact” with respect to a business of insurance means:
  1. Solicitation or inducement;
  2. Negotiations;
  3. Carrying out of a contract of insurance;
  4. Transaction of matters subsequent to the carrying out and arising out of a contract of insurance; or
  5. Any other aspects of insurance operations to which this code applies.
31. “Unauthorized” insurer means an insurer not authorized as provided in paragraph (a)(v) of this section;
32. “This act” or “this code” means title 26 of the Wyoming statutes;
33. “Private health benefit plan” means any hospital or medical policy or certificate, major medical expense insurance, hospital or medical service plan contract or health maintenance organization subscriber contract. “Private health benefit plan” does not include accident only, credit, dental, vision, Medicare supplement, long-term care or disability income insurance, policies or certificates providing coverage for a specified disease or hospital confinement indemnity or limited benefit health insurance, coverage issued as a supplement to liability insurance, worker’s compensation or similar insurance, automobile medical payment insurance or any hospital or medical policy, major medical expense insurance, hospital or medical service plan or contract which by contract or product design is intended to provide coverage for six (6) months or less. Notwithstanding other provisions of this section, the Medicaid program shall continue to obtain reimbursement recovery from all types of insurance included in this section prior to July 2, 2011;
34. “Public health benefit plan” means medicare, medicaid or other health benefit programs or coverages operated or maintained by any governmental entity;
35. “Insurance producer” means a person required to be licensed under the laws of this state to sell, solicit or negotiate insurance, including, but not limited to, agents and brokers;
36. “Fair value”, “fair market value” or “market value” mean fair value as determined pursuant to the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual;
37. “Consumer reporting agency” means any person who does any of the following:
  1. Regularly engages, in whole or in part, in the practice of assembling or preparing consumer reports for a monetary fee;
  2. Obtains information primarily from sources other than insurers;
  3. Furnishes consumer reports to other persons.
38. “Insurance support organization” means:
  1. Any person who regularly engages, in whole or in part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or insurance producer for insurance transactions, including the furnishing of consumer reports or investigative consumer reports to an insurer or insurance producer for use in connection with an insurance transaction or the collection of personal information from insurers, insurance producers or other insurance support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity;
  2. Notwithstanding subparagraph (A) of this paragraph the following persons are not considered insurance support organizations for purposes of this code:
    1. Insurance producers;
    2. Government institutions;
    3. Insurers;
    4. Medical care institutions;
    5. Medical professionals.
39. “Insurance transaction” for the purposes of paragraph (xxxviii) of this subsection, means any transaction involving insurance primarily for personal, family or household needs rather than business or professional needs and which entails the determination of an individual’s eligibility for an insurance coverage, benefit or payment or the servicing of an insurance application, policy, contract or certificate;
40. “Investigative consumer report” means a consumer report or portion of a consumer report in which information about a natural person’s character, general reputation, personal characteristics or mode of living is obtained through personal interviews with the person’s neighbors, friends, associates, acquaintances or others who may have knowledge concerning those items of information;
41. “NAIC” means the National Association of Insurance Commissioners;
42. A natural person who engages in or conducts the “business of insurance” means a person has duties that require licensure under this code or that are a major part of a person’s duties and require specialized knowledge of insurance, which knowledge has been acquired through training and experience and is sufficient that close supervision from a person licensed under this code is not needed. A person is not engaged in the business of insurance who performs tasks often found in business offices not engaged in insurance and who requires close supervision from a person licensed under this code to engage in tasks requiring specialized insurance knowledge. A person in training who performs duties requiring specialized knowledge of insurance is not engaged in the business of insurance if that person is under close supervision from a person licensed under this code;
43. “Multiple employer welfare arrangement” means an employee welfare benefit plan, as defined in 29 U.S.C. § 1002, or any other arrangement which is established to provide hospital, medical or surgical benefits in the event of sickness, accident, disability or death to the employees of two (2) or more employers, which may include self employed individuals, meeting a commonality of interest test, or to the beneficiaries of these persons. This term shall include a bona fide group or association of employers authorized to establish an employee welfare benefit plan under federal law.
As used in W.S. 26-2-116 through 26-2-124 :
1. “Examiner” means any individual or firm authorized by the commissioner to conduct an examination under W.S. 26-2-116 through 26-2-124 ;
2. “Person” means as defined in W.S. 26-1-102(a)(xx) and includes all affiliates of the entities referred to in that definition and air ambulance membership organizations as identified in chapter 43, article 3 of this code.

History. Laws 1955, ch. 231, § 1; W.S. 1957, §§ 26-53, 26.1-2; Laws 1967, ch. 136, §§ 2 to 10, 46 to 49, 97, 154 to 160, 305, 306, 338, 339, 558, 559; 1977, ch. 49, § 1; W.S. 1977, §§ 26-1-102 to 26-1-110, 26-3-101 to 26-3-104 , 26-6-104 , 26-9-102 to 26-9-108, 26-15-102 , 26-15-103 , 26-16-101 , 26-16-102 , 26-32-101 , 26-32-102 ; Laws 1983, ch. 190, § 1; 1985, ch. 140, § 2; 1992, ch. 59, § 2; 1993, ch. 134, § 1; 1995, ch. 93, § 2; 2000, ch. 19, § 1; 2001, ch. 9, § 1; ch. 201, §§ 2, 5, 6; 2004, ch. 57, § 2; 2011, ch. 60, §§ 2, 3; ch. 165, § 1; 2013 ch. 57, § 2, effective July 1, 2013; 2018 ch. 107, § 2, effective July 1, 2018; 2019 ch. 99, § 2, effective July 1, 2019; 2021 ch. 125, § 2, effective July 1, 2021.

The 2004 amendment, effective July 1, 2004, added (a)(xxxvii) to (xl).

The 2011 amendments. —

The first 2011 amendment, by ch. 60 §§ 2, 3, effective July 1, 2011, deleted “service representative” after “broker” in (a)(xx); and repealed former (a)(xxv), which read: “ ‘Service representative’ means: (A) An individual licensed as a service representative and employed on salary by an insurer or managing general agent to work with agents in soliciting, negotiating and carrying out insurance in the insurer or in the insurers represented by the managing general agent; (B) Officers and salaried nonresident traveling representatives of a mutual insurer licensed as service representatives and operating on the premium deposit plan, or of a reciprocal insurer, not using resident agents for the solicitation of business, who inspect risks or solicit insurance in this state but do not receive commissions thereon.”

The second 2011 amendment, by ch. 165 § 1, effective July 1, 2011, in (a)(xxxiii), inserted “policies or certificates providing coverage for a specified disease or hospital confinement indemnity or limited benefit health insurance” and added the last sentence.

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

The 2013 amendment, effective July 1, 2013, added (a)(xli).

The 2018 amendment, effective July 1, 2018, added (a)(xlii).

The 2019 amendment, effective July 1, 2019, added (a)(xliii).

The 2021 amendment , effective July 1, 2021, added "and air ambulance membership organizations as identified in chapter 43, article 3 of this code" in (b)(ii).

Editor's notes. —

Laws 2011, ch. 165 § 2 provides:

“The provisions of this act shall only apply prospectively to any individual or group disability insurance policy issued, delivered, issued for delivery or renewed in this state on or after July 1, 2011. Statutory provisions concerning the excepted benefits enumerated in W.S. 26-5-103(b) as amended in section 1 of this act which were enacted prior to July 2, 2011 shall remain applicable.”

Laws 2004, ch. 57, § 4 provides:

Laws 2004, ch. 57, § 6(a), makes § 4 effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 4, 2004.

Laws 1985, ch. 140, § 3, provides: “No provision of this act is repealed by any subsequent enactment of the legislature unless the enactment clearly indicates that repeal is intended.”

Applicability

Laws 2019, ch. 99 § 3, provides: "This act applies to health insurance policies issued on or after July 1, 2019."

Insurer and agent have fiduciary relationship. —

By Wyoming statute, the relationship between the insurer and its agent is defined to be a fiduciary relation. United States v. Schwab, 88 F. Supp. 2d 1275, 2000 U.S. Dist. LEXIS 2903 (D. Wyo. 2000).

Defendants all stood in a fiduciary relationship to the insurance companies for which they were agents or sub-agents selling insurance on behalf of the company, and in such a fiduciary relationship the defendants had a duty to disclose material information to the insurance company that would be relevant to the insurers' decisions to issue insurance policies to life insurance policy applicants. United States v. Schwab, 88 F. Supp. 2d 1275, 2000 U.S. Dist. LEXIS 2903 (D. Wyo. 2000).

Applied in

Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980).

Quoted in

State Sur. Co. v. Lamb Constr. Co., 625 P.2d 184, 1981 Wyo. LEXIS 291 (Wyo. 1981).

Cited in

Nixon v. State, 994 P.2d 324, 1999 Wyo. LEXIS 198 (Wyo. 1999).

Law reviews. —

For case note, “Contracts—Enforcing a Contract to Procure Insurance when the Promisor is not an Insurance Agency or Broker, Action Ads, Inc. v. Judes, 671 P.2d 309, 1983 Wyo. LEXIS 380 (Wyo. 1983),” see XX Land & Water L. Rev. 259 (1985).

Am. Jur. 2d, ALR and C.J.S. references. —

Foreign insurance company as subject to service of process in action on policy, 44 ALR2d 416.

Activities of insurance adjusters as unauthorized practice of law, 29 ALR4th 1156.

Construction, application, and operation of state “retaliatory” statutes imposing special taxes or fees on foreign insurers doing business within the state, 30 ALR4th 873.

What is “aircraft” or the like within meaning of exclusion or exception clause of insurance policy, 39 ALR4th 214.

Who is an “executive officer” of insured within meaning of liability insurance policy, 1 ALR5th 132.

Indemnitor's liability to indemnitee for attorney's fees and expenses arising out of defense of action alleging indemnitee's negligence, 59 ALR5th 733.

Right of provider of health or medical services, as assignee of claim under ERISA (Employment Retirement Income Security Act of 1974), to maintain action against plan payor, 133 ALR Fed 109.

§ 26-1-103. Compliance with insurance code required.

No person shall transact a business of insurance in Wyoming, or relative to a subject of insurance resident, located or to be performed in Wyoming, without complying with the applicable provisions of this code [title 26].

History. Laws 1899, ch. 80, § 1; R.S. 1899, § 3194; C.S. 1910, § 4141; C.S. 1920, § 5286; R.S. 1931, § 57-441; C.S. 1945, § 52-1042; W.S. 1957, §§ 26-43, 26.1-3; Laws 1967, ch. 136, § 11; W.S. 1977, §§ 26-1-102 to 26-1-111; Laws 1983, ch. 190, § 1.

For case construing similar, repealed statute. —

See Farmers Auto. Inter-Insurance Exch. v. MacDonald, 59 Wyo. 352, 140 P.2d 905, 1943 Wyo. LEXIS 20 (Wyo. 1943).

§ 26-1-104. Applicability of provisions.

This code does not apply to:
1. Repealed by Laws 2018, ch. 21, § 2.
2. Fraternal benefit societies as identified in chapter 29 of this code, except as stated in that chapter;
3. Health maintenance organizations as identified in chapter 34 of this code, except as otherwise specifically provided in that chapter;
4. Transactions in mechanical breakdown insurance as identified in chapter 37 of this code, except as otherwise provided in that chapter;
5. Health care sharing ministries. As used in this section, “health care sharing ministry” means a faith-based nonprofit organization that is tax exempt under the Internal Revenue Code and which:
  1. Coordinates financial sharing for medical expenses among willing participants in accordance with criteria established by the health care sharing ministry;
  2. Has annual audits performed by an independent certified public accountant that are available upon request; and
  3. Includes a written disclaimer on or accompanying all applications and guideline materials distributed by or on behalf of the organization that reads in substance: “Notice: The organization facilitating the sharing of medical expenses is not an insurance company, and neither its guidelines nor plan of operation is an insurance policy. Any assistance with your medical bills is completely voluntary. No other participant is compelled by law or otherwise to contribute toward your medical bills. Participation in the organization or a subscription to any of its documents shall not be considered to be health insurance and is not subject to the regulatory requirements or consumer protections of the Wyoming insurance code. You are personally responsible for payment of your medical bills regardless of any financial sharing you may receive from the organization for medical expenses. You are also responsible for payment of your medical bills if the organization ceases to exist or ceases to facilitate the sharing of medical expenses.”
6. A direct primary care agreement. A direct primary care agreement means a written agreement that:
  1. Is between a patient or their legal representative and a health care provider;
  2. Allows either party to terminate the agreement in writing, without penalty or payment of a termination fee, at any time or after notice as specified in the agreement which notice shall not exceed sixty (60) days;
  3. Describes the health care services to be provided in exchange for payment of a periodic fee;
  4. Specifies the periodic fee required and any additional fees that may be charged;
  5. May allow the periodic fee and any additional fees to be paid by a third party;
  6. Prohibits the provider from charging or receiving additional compensation for health care services included in the periodic fee; and
  7. Conspicuously and prominently states that the agreement is not health insurance and does not meet any individual health insurance mandate that may be required by federal law.
7. Air ambulance membership organizations as identified in chapter 43, article 3 of this code, except as otherwise specifically provided in this title.

History. Laws 1967, ch. 136, § 12; W.S. 1957, § 26.1-12; W.S. 1977, § 26-1-112; Laws 1983, ch. 190, § 1; 1985, ch. 133, § 2; 1987, ch. 87, § 2; 2015 ch. 123, § 1, effective July 1, 2015; 2016 ch. 6, § 1, effective February 29, 2016; 2018 ch. 21, § 2, effective March 9, 2018; 2021 ch. 125, § 2, effective July 1, 2021.

The 2015 amendment, effective July 1, 2015, added (a)(v).

The 2016 amendment , added (a)(vi).

Laws 2016, ch. 6 § 2, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8 of the Wyo. Const. Approved February 29, 2016.

The 2018 amendment, repealed former (a)(i) which read: "Farm mutual property insurers as identified in chapter 26 of this code, except as stated in that chapter."

Laws 2018, ch. 21, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 9, 2018.

The 2021 amendment, effective July 1, 2021, added (a)(vii).

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Meaning of “this code.” —

For the definition of “this code,” referred to throughout subsection (a), see § 26-1-102(a)(xxxii).

§ 26-1-105. Provisions relating to particular insurance to prevail over general provisions.

Provisions of this code [title 26] relative to a particular kind of insurance or type of insurer or particular matter prevail over provisions relating to insurance in general or insurers in general or to the particular matter in general.

History. Laws 1967, ch. 136, § 13; W.S. 1957, § 26.1-14; W.S. 1977, § 26-1-113; Laws 1983, ch. 190, § 1.

§ 26-1-106. Captions or headings not to limit scope of provisions.

The scope and meaning of any provision are not limited or otherwise affected by the caption or heading of any chapter, section or provision.

History. Laws 1967, ch. 136, § 14; W.S. 1957, 26.1-14; W.S. 1977, § 26-1-114; Laws 1983, ch. 190, § 1.

§ 26-1-107. General criminal and civil penalties.

Each violation of this code [title 26] for which a greater penalty is not provided by another provision of this code or by other applicable laws of this state, in addition to any applicable prescribed denial, suspension or revocation of certificate of authority or license, is a misdemeanor punishable upon conviction by a fine of not more than one thousand dollars ($1,000.00), or by imprisonment in the county jail for not more than six (6) months, or both. Each violation is a separate offense.
Any person who violates, or who instructs his agent or adjuster to violate, any provision of this code, any lawful rule or final order of the commissioner or any final judgment or decree made by any court, upon the commissioner’s application, shall pay a civil penalty in an amount the commissioner determines of not more than five thousand dollars ($5,000.00) for each offense, or fifty thousand dollars ($50,000.00) in the aggregate for all offenses within any one (1) year period. In the case of individual agents or adjusters, the civil penalty shall be not more than one thousand dollars ($1,000.00) for each offense or ten thousand dollars ($10,000.00) in the aggregate for all offenses within any one (1) year period. The penalty shall be collected from the violator and paid by the commissioner, or the appropriate court, to the state treasurer and credited as provided in W.S. 8-1-109 .
Before the commissioner imposes a civil penalty, he shall notify the person, agent or adjuster accused of a violation, in writing, stating specifically the nature of the alleged violation and fixing a time and place, at least ten (10) days from the date of the notice, when a hearing of the matter shall be held. After hearing or upon failure of the accused to appear at the hearing, the commissioner shall determine the amount of the civil penalty to be imposed in accordance with the limitations expressed in subsection (b) of this section. Each violation is a separate offense.
A civil penalty may be recovered in an action brought thereon in the name of the state of Wyoming in any court of appropriate jurisdiction, and the court may review the penalty as to both liability and reasonableness of amount.
The provisions of this section are in addition to and not instead of any other enforcement provisions contained in this code.

History. Laws 1967, ch. 136, § 15; W.S. 1957, § 26.1-15; Laws 1971, ch. 149, § 1; W.S. 1977, § 26-1-115; Laws 1979, ch. 148, § 1; 1983, ch. 190, § 1; 2005, ch. 157, § 2; 2015 ch. 13, § 1, effective July 1, 2015.

The 2005 amendment, substituted “and credited as provided in W.S. 8-1-109 ” for “to the credit of the general fund.”

Laws 2005, ch. 157, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved February 26, 2005.

The 2015 amendment, effective July 1, 2015, rewrote (b).

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

It would be improper to grant certain injunctive relief requested by the insurance commissioner, i.e., the direct payment of the tax debt of an unknown amount for certain years, the direct report of the proportion of the premiums collected on persons, subjects or risks located or resident in Wyoming and covered by policies in which such risks are in more than one state, and the payment of fines as civil penalties, where the obligation for the payment of such taxes has not been ascertained and the companies involved have not been requested to make the designated reports or pay the taxes. Langdon v. Aetna Life Ins. Co., 640 P.2d 1092, 1982 Wyo. LEXIS 299 (Wyo. 1982).

Punitive damages. —

In arriving at an appropriate amount of punitive damages with respect to insurance carriers, it would be appropriate to give this section as an instruction. Farmers Ins. Exch. v. Shirley, 958 P.2d 1040, 1998 Wyo. LEXIS 74 (Wyo. 1998), reh'g denied, 1998 Wyo. LEXIS 81 (Wyo. June 4, 1998).

Applied in

Wyoming Ins. Dep't v. Sierra Life Ins. Co., 599 P.2d 1360, 1979 Wyo. LEXIS 453 (Wyo. 1979); Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980).

Am. Jur. 2d, ALR and C.J.S. references. —

Insurer's tort liability for consequential or punitive damages for wrongful failure or refusal to defend insured, 20 ALR4th 23.

Emotional or mental distress as element of damages for liability insurer's wrongful refusal to settle, 57 ALR4th 801.

Fraud actions: Right to recover for mental or emotional distress, 11 ALR5th 88.

§ 26-1-108. Jurisdiction of insurance department.

Notwithstanding any other provision of law, and except as provided in this section, any person or other entity which provides insurance coverage in this state for medical, surgical, chiropractic, physical therapy, speech pathology, audiology, professional mental health, dental, hospital or optometric expenses, whether the coverage is by direct payment, reimbursement, or otherwise, shall be subject to the jurisdiction of the state insurance department, unless the person or other entity shows that while providing the services it is subject to the exclusive jurisdiction of another agency of this state or the federal government.
A person or entity may show that it is subject to the exclusive jurisdiction of another agency of this state or the federal government, by providing to the insurance commissioner the appropriate certificate, license or other document issued by the other governmental agency which permits or qualifies it to provide those services.
Any person or entity which is unable to show under subsection (b) of this section that it is subject to the exclusive jurisdiction of another agency of this state or the federal government, shall submit to an examination by the insurance commissioner to determine the organization and solvency of the person or the entity, and to determine whether or not the person or entity complies with the applicable provisions of this code.
Any person or entity unable to show that it is subject to the exclusive jurisdiction of another agency of this state or the federal government, shall be subject to all appropriate provisions of this code regarding the conduct of its business. If a person or entity is subject to the exclusive jurisdiction of another agency of this state or the federal government, this fact shall be disclosed on all policy forms.
Any production agency or administrator which advertises, sells, transacts or administers the coverage in this state described in subsection (a) of this section and which is required to submit to an examination by the insurance commissioner under subsection (c) of this section, shall, if the coverage is not fully insured or otherwise fully covered by an admitted life or disability insurer, nonprofit hospital service plan, or nonprofit health care plan, advise every purchaser, prospective purchaser and covered person of such lack of insurance or other coverage. Any administrator which advertises or administers the coverage in this state described in subsection (a) of this section and which is required to submit to an examination by the insurance commissioner under subsection (c) of this section, shall advise any production agency of the elements of the coverage, including the amount of “stop-loss” insurance in effect.

History. Laws 1989, ch. 246, § 1.

Meaning of “this code.” —

For the definition of “this code,” referred to in this section, see § 26-1-102(a)(xxxii).

Chapter 2 The Insurance Commissioner

Article 1. Commissioner

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance § 31; 63C Am. Jur. 2d Public Officers and Employees §§ 16, 17; 72 Am. Jur. 2d States, Territories and Dependencies § 61.

§ 26-2-101. Department of insurance established.

There is established the department of insurance.

History. Laws 1919, ch. 75, § 1; C.S. 1920, § 227; R.S. 1931, § 57-101; C.S. 1945, § 52-101; Laws 1957, ch. 236, § 1; W.S. 1957, § 26-1; Laws 1963, ch. 108, § 1; 1967, ch. 136, § 16; 1983, ch. 190, § 1.

§ 26-2-102. Insurance commissioner; appointment; vacancy; removal from office; other requirements.

The chief officer of the department is the “insurance commissioner”.
The commissioner shall be appointed by the governor.
If for any cause a vacancy occurs in the office of commissioner, the governor shall fill the vacancy in accordance with W.S. 28-12-101 .
The governor may remove a commissioner as provided in W.S. 9-1-202 .
Effective July 1, 1979, appointments and terms shall be in accordance with W.S. 28-12-101 through 28-12-103 .

History. Laws 1919, ch. 75, § 1; C.S. 1920, § 227; R.S. 1931, § 57-101; C.S. 1945, § 52-101; Laws 1957, ch. 236, § 1; W.S. 1957, § 26-1; Laws 1963, ch. 108, § 1; 1967, ch. 136, § 17; 1971, ch. 190, § 11; 1979, ch. 17, § 2; 1983, ch. 190, § 1; 1987, ch. 175, § 1.

§ 26-2-103. Insurance commissioner; eligibility for appointment.

No individual is eligible for appointment to or shall hold the office of commissioner unless he is a qualified elector of this state and free of conflicting interests as specified in W.S. 26-2-107 .

History. Laws 1967, ch. 136, § 18; W.S. 1957, § 26.1-18; Laws 1983, ch. 190, § 1.

§ 26-2-104. Insurance commissioner; official seal.

The commissioner shall have an official seal in the form and design in use and on file in the office of secretary of state.
The commissioner shall issue under his official seal all his certificates, other than licenses of agents, brokers, adjusters and other insurance representatives.

History. Laws 1919, ch. 75, § 3; C.S. 1920, § 229; R.S. 1931, § 57-103; C.S. 1945, § 52-103; Laws 1957, ch. 236, § 3; W.S. 1957, § 26-4; Laws 1963, ch. 108, § 3; 1967, ch. 136, § 20; 1983, ch. 190, § 1.

§ 26-2-105. Insurance commissioner; salary.

The commissioner shall receive a salary as provided under W.S. 9-2-3207 .

History. Laws 1919, ch. 75, § 5; C.S. 1920, § 228; R.S. 1931, § 57-102; Laws 1945, ch. 142, § 3; C.S. 1945, § 52-102; Laws 1949, ch. 65, § 26; 1951, ch. 44, § 19; 1953, ch. 139, § 19; 1957, ch. 157, § 31; ch. 236, § 2; W.S. 1957, § 26-2; Laws 1961, ch. 148, § 37; 1965, ch. 115, § 38, 1967, ch. 146, § 21; 1969, ch. 168, § 25; 1971, ch. 190, § 10; 1983, ch. 190, § 1; 2021 ch. 56, § 3, effective April 1, 2021.

Cross references. —

As to payment of salaries of state officers, see § 9-3-101 .

The 2021 amendment substituted "9-2-3207" for "9-2-1022."

Laws 2021, ch. 56, § 7, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved April 1, 2021.

§ 26-2-106. Deputy commissioner, examiners, clerks, assistants and consultants.

The commissioner, with the governor’s approval, may appoint a deputy commissioner and may revoke the appointment at his pleasure.
The commissioner may appoint examiners, clerks and other necessary assistants as the proper conduct of his office requires, and may revoke the appointments at his pleasure. In the appointment of examiners the commissioner shall consider standards of qualification the National Association of Insurance Commissioners recommends.
Salary for personnel in subsections (a) and (b) of this section shall be as provided under W.S. 9-2-3207 .
The commissioner may contract for independent or consulting actuarial, rating or other technical services, on a fee basis, without giving the individual status as a state employee.

History. Laws 1919, ch. 75, § 5; C.S. 1920, § 231; Laws 1921, ch. 95, § 29; R.S. 1931, § 57-105; Laws 1933, ch. 103, § 13; 1945, ch. 142, § 4; C.S. 1945, § 52-105; Laws 1947, ch. 75, § 1; 1949, ch. 65, § 27; 1951, ch. 44, § 20; 1953, ch. 139, § 20; 1957, ch. 157, § 32; ch. 236, § 4; W.S. 1957, § 26-3; Laws 1961, ch. 148, § 38; 1963, ch. 108, § 2; 1965, ch. 115, § 39; 1967, ch. 136, § 22; 1971, ch. 27, § 8; 1983, ch. 190, § 1; 2021 ch. 56, § 3, effective April 1, 2021.

The 2021 amendment substituted “9-2-3207” for “9-2-1022” in (c).

Laws 2021, ch. 56, § 7, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved April 1, 2021.

§ 26-2-107. Conflict of interest prohibited; additional compensation prohibited.

The commissioner or his deputy, or any examiner, assistant or employee of the department shall not:
1. Be connected with the management of or be financially interested in any insurer, insurance agency or insurance transaction except as a policyholder or claimant under a policy;
2. Engage in any other business or occupation interfering or inconsistent with department duties, except that as to those matters in which a conflict of interest does not exist on the part of any individual, the commissioner may employ or retain insurance actuaries, accountants or other technicians who are independently practicing their professions even though similarly employed or retained by insurers or others; or
3. Be given or receive any fee, compensation, loan, gift or other thing of value in addition to the compensation and expense allowance provided by law.

History. Laws 1967, ch. 136, § 23; W.S. 1957, 26.1-23; Laws 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-2-108. Commissioner; delegation of authority.

The commissioner may delegate to his deputy or any department employee the exercise or discharge in the commissioner’s name of any power, duty, or function vested in or imposed upon the commissioner under this code [title 26], other than the supervision of department operations.
The official act of any individual acting in the commissioner’s name and by his authority is an official act of the commissioner. The commissioner is responsible for all such acts.

History. Laws 1967, ch. 136, § 24; W.S. 1957, § 26.1-24; Laws 1983, ch. 190, § 1.

§ 26-2-109. Commissioner; powers and duties generally.

The commissioner shall:
1. Personally supervise the department operations;
2. Examine and inquire into violations of this code [title 26];
3. Enforce this code with impartiality;
4. Execute the duties imposed upon him by this code;
5. Have the powers and authority expressly conferred upon him by or reasonably implied from this code;
6. Immediately pay to the state treasurer for deposit in the general fund, unless otherwise specifically provided, any monies paid to him under this code;
7. Have any additional powers and duties as may be provided by other laws of this state.
The commissioner may conduct examinations and investigations of insurance matters, in addition to examinations and investigations expressly authorized, as he deems proper, upon reasonable and probable cause, to determine whether any person has violated any provisions of this code or to secure information useful in the lawful administration of any provision of this code. The cost of any additional examinations and investigations shall be borne by the state.
The commissioner, with the governor’s approval, may enter into interstate compacts with other states in the region to provide for a uniform climate for insurance coverage in the compacting states. The compacts may include:
1. Interstate compacts to negotiate uniform rating structures in the compacting states;
2. Interstate compacts to negotiate the use of regional ratings or trendings rather than national ratings or trendings; or
3. Interstate compacts to provide for the operation of mutual companies to provide insurance for risks that are critical to the health, safety or welfare of the compacting states.
Repealed by Laws 2017, ch. 9, § 3.
The commissioner may request a waiver from the NAIC’s financial regulation standards and accreditation program requirements when the commissioner deems the waiver to be in the interest of the state. The commissioner shall report in writing any waiver request to the joint corporations, elections and political subdivisions interim committee within thirty (30) days of the request.

History. Laws 1921, ch. 142, § 1; 1931, ch. 26, § 1; R.S. 1931, § 57-201; C.S. 1945, § 52-301; W.S. 1957, §§ 26.1-25, 26-57; Laws 1967, ch. 136, § 25; 1976, ch. 19, § 1; W.S. 1977, §§ 26-2-109 , 26-38-101 ; Laws 1983, ch. 190, § 1; 2017 ch. 9, § 3, effective July 1, 2017; 2019 ch. 10, § 1, effective February 14, 2019.

The 2017 amendment, effective July 1, 2017, repealed former (d), which read: “Notwithstanding any other provision of this chapter, the commissioner does not have any powers, duties or responsibilities with respect to the state board of insurance agent's examiners, except as expressly provided in chapter 10 of this code.”

The 2019 amendment, added “(e) The commissioner may request a waiver from the NAIC’s financial regulation standards and accreditation program requirements when the commissioner deems the waiver to be in the interest of the state. The commissioner shall report in writing any waiver request to the joint corporations, elections and political subdivisions interim committee within thirty (30) days of the request.”

Laws 2019, ch. 10, § 2, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved February 14, 2019.

Commissioner has authority to regulate private mortgage insurance. — Mortgage Guar. Ins. Corp. v. Langdon, 634 P.2d 509, 1981 Wyo. LEXIS 375 (Wyo. 1981).

There has not been improper or unconstitutional delegation of power to commissioner pursuant to the Mortgage Guar. Ins. Corp. v. Langdon, 634 P.2d 509, 1981 Wyo. LEXIS 375 (Wyo. 1981).

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

Applied in

State Farm Mut. Auto. Ins. Co. v. Wyoming Ins. Dep't, 793 P.2d 1008, 1990 Wyo. LEXIS 61 (Wyo. 1990).

§ 26-2-110. Rules and regulations.

Subject to the requirements of the Wyoming Administrative Procedure Act, the commissioner may make reasonable rules and regulations necessary to carry out any provision of this code. No rule or regulation shall extend, modify or conflict with any law of this state or the reasonable implications thereof.
Any interested person may petition the commissioner requesting the promulgation, amendment or repeal of any rule or regulation, under the applicable procedures of the Wyoming Administrative Procedure Act.
In addition to any other penalty under this code, willful violation of any provision of this code or any rule or regulation promulgated pursuant thereto subjects the violator to suspension or revocation of a certificate of authority or license as may be applicable. No penalty applies to any act done or omitted in good faith in conformity with the rule or regulation, notwithstanding that after the act or omission the rule or regulation may be amended or rescinded or determined by judicial or other authority to be invalid.
In addition to all other rulemaking authority granted to the commissioner, the commissioner may promulgate necessary and appropriate rules to satisfy NAIC accreditation requirements, provided that:
1. The commissioner has determined promulgation of the rules is in the interest of the state and the rules are otherwise appropriate;
2. The rules shall not be in effect for longer than three (3) years; and
3. The commissioner has requested a waiver, if determined appropriate, to the applicable NAIC accreditation requirement pursuant to W.S. 26-2-109(e).
The commissioner may promulgate rules to identify procedures for conducting examinations of the Wyoming state employees’ and officials’ group insurance program in accordance with W.S. 9-3-205(c).

History. Laws 1921, ch. 142, § 1; 1931, ch. 26, § 1; R.S. 1931, § 57-201; C.S. 1945, § 52-301; W.S. 1957, §§ 26-57, 26.1-2; Laws 1967, ch. 136, § 26; 1983, ch. 190, § 1; 2019 ch. 10, § 1, effective February 14, 2019; 2020 ch. 46, § 1, effective July 1, 2020.

Applied in

State Farm Mut. Auto. Ins. Co. v. Wyoming Ins. Dep't, 793 P.2d 1008, 1990 Wyo. LEXIS 61 (Wyo. 1990).

Cited in

Billings v. Wyoming Bd. of Outfitters & Guides, 2001 WY 81, 30 P.3d 557, 2001 Wyo. LEXIS 94 (Wyo. 2001).

The 2019 amendment, added "(d) In addition to all other rulemaking authority granted to the commissioner, the commissioner may promulgate necessary and appropriate rules to satisfy NAIC accreditation requirements, provided that:"; added "(d)(i) The commissioner has determined promulgation of the rules is in the interest of the state and the rules are otherwise appropriate;"; added (d)(ii) The rules shall not be in effect for longer than three (3) years; and"; added "(d)(iii) The commissioner has requested a waiver, if determined appropriate, to the applicable NAIC accreditation requirement pursuant to W.S. 26-2-109(e)."

Laws 2019, ch. 10, § 2, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved February 14, 2019.

The 2020 amendment, effective July 1, 2020, added (e).

§ 26-2-111. Orders and notices of commissioner; contents; delivery.

Orders and notices of the commissioner are effective only when in writing signed by him or by his authority.
Except as otherwise expressly provided by law as to particular orders, any order of the commissioner shall concisely state:
1. Its effective date;
2. Its intent or purpose;
3. The grounds on which based;
4. The provisions of this code [title 26] pursuant to which action is so taken or proposed to be taken, but failure to designate a particular provision does not deprive the commissioner of the right to rely on that provision.
Except as may be provided as to particular procedures, an order or notice may be given by delivery to the person to be ordered or notified or by mailing it, postage prepaid, addressed to him at his principal place of business or residence as last of record in the department. The order or notice is deemed to have been given when so mailed.

History. Laws 1967, ch. 136, § 27; W.S. 1957, § 26.1-27; Laws 1983, ch. 190, § 1.

§ 26-2-112. Enforcement of code and orders; injunctions; penalty for violation of orders.

The commissioner, upon the advice of and through the attorney general, may invoke the aid of the courts through injunction or other proper process to enforce any proper order he makes or action he takes.
If the commissioner has reason to believe that any person has violated any provision of this code [title 26], or any provision of other law applicable to insurance operations, for which criminal prosecution is provided and would be in order, he shall give the information relative thereto to the attorney general or to the district attorney for the county having jurisdiction of the violation. The attorney general or district attorney shall promptly institute any action or proceedings against the person as in his opinion the information requires or justifies.
In addition to any other applicable penalty, any person who violates a lawful order of the commissioner, upon proof thereof to the court’s satisfaction, shall pay to this state a sum not to exceed one thousand dollars ($1,000.00), or if the violation is found to be willful, a sum not to exceed two thousand dollars ($2,000.00). Any penalty may be recovered in a civil action against the violator.

History. Laws 1921, ch. 142, § 6; R.S. 1931, § 57-206; C.S. 1945, § 52-306; W.S. 1957, §§ 26-58, 26.1-28; Laws 1967, ch. 136, § 28; 1981, Sp. Sess. ch. 22, § 1; 1983, ch. 190, § 1.

Mandamus. —

For decision construing repealed provisions similar to section, see State ex rel. Coddington v. Loucks, 30 Wyo. 485, 222 P. 37, 1924 Wyo. LEXIS 72 (Wyo. 1924).

Improper to grant injunctive relief requested by commissioneruntil parties' obligations ascertained. —

§ 26-2-113. Records and other papers; generally.

The commissioner shall:
1. File in the department and safely keep all statements, reports, filings and papers required by law;
2. Preserve in the department in permanent form records of his proceedings, hearings, investigations and examinations;
3. Keep a suitable record of all insurer certificates of authority and of all licenses issued under this code [title 26] together with all applicable suspensions and revocations and of the causes thereof.
The records and filings in the department are open to public inspection, except as otherwise provided by this code.
The commissioner may destroy unneeded or obsolete records and filings in the department in accordance with general provisions and procedures applicable to administrative agencies of this state.
In order to assist in the performance of his duties under this code, the commissioner may:
1. Share documents, materials or other information, including confidential and privileged documents, materials or information, with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and with state, federal and international law enforcement authorities, including members of any supervisory college described in W.S. 26-44-118 , provided the recipient agrees in writing to maintain the confidentiality and privileged status of any document, material or other information and has verified in writing the legal authority to maintain confidentiality;
2. Receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
3. Enter into agreements governing sharing and use of information consistent with this subsection.

History. Laws 1919, ch. 75, § 7; C.S. 1920, § 233; R.S. 1931, § 57-107; C.S. 1945, § 52-107; Laws 1957, ch. 236, § 5; W.S. 1957, § 26-5; Laws 1963, ch. 108, § 4; 1967, ch. 136, § 29; 1983, ch. 190, § 1; 2001, ch. 9, § 1; 2013 ch. 57, § 2, effective July 1, 2013.

Cross references. —

For provision as to destruction or disposition of public records, see § 9-2-412 .

The 2013 amendment, effective July 1, 2013, added “including members of any supervisory college described in W.S. 26-44-118 ,” following “enforcement authorities,”; added “in writing” following “recipient agrees”; and added “and has verified in writing the legal authority to maintain confidentiality” following “other information in (d)(i).

§ 26-2-114. Records and other papers; reproductions and certified copies.

Reproductions of records or documents on file in the department, when certified by the commissioner, shall be received in evidence in all proceedings and courts and have the same effect and force as the originals.
Upon request of any person and payment of the applicable fee, the commissioner shall furnish a certified copy of any record or document in the department which is then subject to public inspection.

History. Laws 1967, ch. 136, § 30; W.S. 1957, § 26.1-30; Laws 1983, ch. 190, § 1.

§ 26-2-115. Report to governor.

The commissioner, as required by W.S. 9-2-1014 , shall report to the governor showing:
1. A list of authorized insurers transacting insurance in this state, with any tabular summary of their financial statements as he deems appropriate;
2. Names of all insurers whose business was closed during the preceding reporting period, the cause thereof and the amount of assets and liabilities as ascertainable;
3. Names of insurers against which delinquency or similar proceedings were instituted, and a concise statement of the facts with respect to each proceeding and the status thereof;
4. The department receipts and expenses for the preceding reporting period;
5. His recommendations as to amendments or supplementation of laws affecting insurance or the department; and
6. Any other matters he deems proper or of benefit to the public in regard to the insurance business in this state.

History. Laws 1921, ch. 142, § 1; 1931, ch. 26, § 1; R.S. 1931, § 57-201; C.S. 1945, § 52-301; W.S. 1957, §§ 26-57, 26.1-31; Laws 1967, ch. 136, § 31; 1973, ch. 215, § 1; 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-2-116. Examination of insurers.

For the purpose of determining financial condition, ability to fulfill and manner of fulfillment of its obligations, the nature of its operations and compliance with law, the commissioner or any of his examiners may examine any insurer as often as he, in his sole discretion, deems advisable. He shall examine each insurer licensed in this state not less frequently than every five (5) years. Examination of a reciprocal insurer may include examination of its attorney-in-fact as to its transactions relating to the insurer. Examination of an alien insurer may be limited to its insurance transactions and affairs in the United States, except as the commissioner otherwise requires. In scheduling and determining the nature, scope and frequency of the examinations the commissioner shall consider such matters as the results of financial statement analyses and ratios, changes in management or ownership, actuarial opinions, reports of independent certified public accountants and other criteria as set forth in the Examiners’ Handbook adopted by the National Association of Insurance Commissioners and in effect when the commissioner exercises discretion under this section.
The commissioner shall in like manner examine each insurer applying for an initial certificate of authority to transact insurance in this state.
Repealed by Laws 1992, ch. 59, § 3.
In lieu of making his own examination of any foreign or alien insurer licensed in this state, the commissioner may accept an examination report on the company as prepared by the insurance department for the company’s state of domicile or port of entry state until January 1, 1994. Thereafter, such reports may only be accepted if:
1. The insurance department preparing the report was, at the time of the examination, accredited under the National Association of Insurance Commissioners’ financial regulation standards and accreditation program; or
2. The examination is performed under the supervision of an accredited insurance department or with the participation of one (1) or more examiners who are employed by an accredited insurance department and who, after the review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their insurance department.

History. Laws 1925, ch. 146, § 1; R.S. 1931, § 57-301; C.S. 1945, § 52-201; W.S. 1957, §§ 26-48, 26.1-32; Laws 1967, ch. 136, § 32; 1983, ch. 190, § 1; 1992, ch. 59, §§ 2, 3; 1993, ch. 134, § 1.

§ 26-2-117. Examination of other than insurers.

For the purpose of ascertaining compliance with law, or relationships and transactions between any person and any insurer or proposed insurer, the commissioner, as often as he deems advisable, may examine the accounts, records, documents and transactions pertaining to or affecting insurance affairs or proposed insurance affairs of any person:
1. Who is or holds himself out to be an insurance agent, broker, general agent, adjuster or insurer representative;
2. Having a contract under which he enjoys in fact the exclusive or dominant right to manage or control an insurer;
3. Holding the shares of voting stock or the policyholder proxies of a domestic insurer, for the purpose of controlling the management thereof, as voting trustee or otherwise;
4. Engaged in or in any way involved or proposing to be involved in this state in the promotion, formation or financing of an insurer or insurance holding corporation, or corporation or other group to finance an insurer or the production of its business.

History. Laws 1925, ch. 146, § 1; R.S. 1931, § 57-301; C.S. 1945, § 52-201; W.S. 1957, § 26-48; Laws 1967, ch. 136, § 33; 1983, ch. 190, § 1; 2001, ch. 201, § 2.

Cross references. —

As to examination of fraternal benefit societies, see § 26-29-228 .

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-2-118. Examinations; generally.

History. Laws 1925, ch. 146, § 1; R.S. 1931, § 57-301; C.S. 1945, § 52-201; W.S. 1957, § 26-48; Laws 1967, ch. 136, § 34; 1983, ch. 190, § 1; 1993, ch. 134, §§ 1, 2.

Meaning of “this act.” —

For the definition of “this act,” referred to in this section, see § 26-1-102(a)(xxxii).

§ 26-2-119. [Repealed.]

Repealed by Laws 1993, ch. 134, § 2.

Editor's notes. —

This section, which derived from Laws 1967, ch. 136, § 35, related to examinations and appraisal of persons being examined. For present similar provisions, see § 26-2-118(f).

§ 26-2-120. Examinations; deceit and obstruction during examination prohibited.

No person shall make or authorize any false certificate, entry, memorandum or writing in or relative to the books, records, files, documents and affairs of the person being examined with the intent to deceive the commissioner or examiner, or otherwise willfully obstruct the examination.

History. Laws 1925, ch. 146, § 2; R.S. 1931, § 57-302; C.S. 1945, § 52-202; W.S. 1957, §§ 26-49, 26.1-36; Laws 1967, ch. 136, § 36; 1983, ch. 190, § 1.

Applied in

Wyoming Ins. Dep't v. Sierra Life Ins. Co., 599 P.2d 1360, 1979 Wyo. LEXIS 453 (Wyo. 1979).

§ 26-2-121. Examinations; report; contents.

History. Laws 1925, ch. 146, § 3; R.S. 1931, § 57-303; C.S. 1945, § 52-203; W.S. 1957, §§ 27-50, 26.1-37; Laws 1967, ch. 136, § 37; 1977, ch. 72, § 1; 1983, ch. 190, § 1; 1993, ch. 134, §§ 1, 2; 2001, ch. 9, § 1; 2013 ch. 57, § 2, effective July 1, 2013.

The 2013 amendment, effective July 1, 2013, added “, or in the course of analysis by the commissioner of the financial condition or market conduct of a company,” preceding “shall be given” in (m).

Editor's notes. —

There is no subsection (i) or (l) in this section as it appears in the printed acts.

Meaning of “this code.” —

For the definition of “this code,” referred to in subsections (h) and (k), see § 26-1-102(a)(xxxii).

Wyoming Administrative Procedure Act. —

See § 16-3-101(a), (b)(xi).

§ 26-2-122. Examinations; expense.

The reasonable and proper expense of examination of an insurer or of any person referred to in W.S. 26-2-117(a)(ii) or (iv) shall be borne by the person examined, unless the expense has been otherwise provided for by the insurer having paid the assessment established by W.S. 26-2-204 . The expense shall include the reasonable and proper expenses of the commissioner and his examiners, and a reasonable per diem as to such examiners, as necessarily incurred in the examination.
The person examined shall promptly pay the examination expense upon the commissioner’s presentation of a reasonably detailed written account thereof. The commissioner shall file a copy of the account in the department as a public record.

History. Laws 1925, ch. 146, § 1; R.S. 1931, § 57-301; C.S. 1945, § 52-201; W.S. 1957, §§ 26-48, 26.1-38; Laws 1967, ch. 136, § 38; 1973, ch. 245, § 3; 1983, ch. 190, § 1; 1988, ch. 62, § 2.

Applied in

Wyoming Ins. Dep't v. Sierra Life Ins. Co., 599 P.2d 1360, 1979 Wyo. LEXIS 453 (Wyo. 1979).

§ 26-2-123. Witnesses; evidence; subpoenas.

In any examination or investigation the department conducts, the commissioner or any representative he appoints may:
1. Administer oaths and affirmations;
2. Examine and cross-examine witnesses;
3. Receive oral and documentary evidence;
4. Subpoena witnesses and compel their attendance and testimony; and
5. Require by subpoena the production of any books, papers, records, files, correspondence, documents and other evidence deemed relevant to the inquiry whether under control of the department, the insurer or other persons.
If any individual refuses to comply with any subpoena or to testify as to any matter concerning which he is lawfully interrogated, the district court of the county in which the examination or investigation is being conducted or in which the individual resides or may be found, on the commissioner’s application, may issue an order requiring the individual to comply with the subpoena and testify or produce the evidence subpoenaed. Failure to obey a court order may be punished by the court as contempt.
Subpoenas shall be served and proof of service made in the same manner as if issued by a district court. Witness fees and mileage, if claimed, shall be allowed the same as for testimony in court.

History. Laws 1925, ch. 146, § 1; R.S. 1931, § 57-301; C.S. 1945, § 52-201; W.S. 1957, §§ 26-48, 26.1-39; Laws 1967, ch. 136, § 39; 1983, ch. 190, § 1; 1993, ch. 134, § 1.

Cross references. —

For provision as to witness fees and mileage, see § 1-14-102 .

During investigative stage, commissioner may exercise subpoena powers ex parte to determine whether or not a complaint should be issued. Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980), overruled in part, Torres v. State ex rel. Wyo. Workers' Safety & Comp. Div., 2004 WY 92, 95 P.3d 794, 2004 Wyo. LEXIS 119 (Wyo. 2004).

§ 26-2-124. Immunity from prosecution when testimony is compelled; exception for perjury; waiver of immunity.

If any person asks to be excused from attending or testifying or from producing any books, papers, records, correspondence, documents or other evidence in connection with any examination, investigation or hearing the commissioner or his representative conducts, or in any proceeding or action before any court or magistrate upon a charge of violation of this code [title 26], on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture, and, notwithstanding, is directed by the commissioner and the attorney general to give the testimony or produce the evidence, he shall comply with that direction. The person shall not thereafter be prosecuted or subjected to any penalty or forfeiture for or because of any transaction, matter or thing concerning which he may have testified or produced evidence, and no testimony given or evidence produced shall be received against him upon any criminal action, investigation or proceeding, except that no person so testifying is exempt from prosecution or punishment for perjury.
Any person may execute, acknowledge and file in the department a statement expressly waiving the immunity or privilege in respect to any transaction, matter or thing specified in the statement. The testimony of that person or the evidence in relation to the transaction, matter or thing may then be received or produced before any judge or justice, court, tribunal, magistrate, grand jury or otherwise, and if so received or produced the person is not entitled to any immunity or privileges because of any testimony he gives or evidence he produces.

History. Laws 1921, ch. 142, § 19; R.S. 1931, § 57-219; C.S. 1945, § 52-407; W.S. 1957, §§ 26-60, 26.1-40; Laws 1967, ch. 136, § 40; 1983, ch. 190, § 1.

Cited in

Hall v. State, 851 P.2d 1262, 1993 Wyo. LEXIS 88 (Wyo. 1993).

Law reviews. —

For casenote, “Criminal Procedure — Witness Immunity — The Story of a County Attorney Who Said, ‘I Think I Can, I Think I Can,’ and the Brave Little Conscience that Couldn't be Shocked. Gale v. State, 792 P.2d 570, 1990 Wyo. LEXIS 48 (Wyo. 1990),” see XXVII Land & Water L. Rev. 191 (1992).

§ 26-2-125. Commissioner's hearings; generally; when required; request for hearing; stay.

The commissioner may hold a hearing without request by others for any purpose within the scope of this code [title 26].
The commissioner shall hold a hearing:
1. If required by this code or the Wyoming Administrative Procedure Act [§§ 16-3-101 through 16-3-115 ]; or
2. Upon written request therefor by a person aggrieved by any act, threatened act or failure of the commissioner to act, or by any report, rule, regulation or order of the commissioner, other than an order for the holding of a hearing, or an order on a hearing or pursuant to the order, of which the person had notice.
Any request for hearing shall be filed in the department within ninety (90) days after the person knows or reasonably should know of the act, threatened act, failure, report or order, unless a different period is provided for by other laws applicable to a particular matter, in which case the other law governs. A hearing as to the legality of a rule or regulation may be requested within ninety (90) days after the person knows or reasonably should know of the application or proposed application of the rule or regulation as to the person in a particular instance.
Any request for hearing shall summarize the information and grounds to be relied upon as a basis for the relief to be sought at the hearing.
If the commissioner finds that the request is made in good faith, that the person would be aggrieved if his grounds are established and that the grounds otherwise justify the hearing, he shall hold the hearing within thirty (30) days from the date the request is filed, unless postponed by mutual consent. Failure to hold the hearing upon request of a person entitled thereto as provided in this section constitutes a denial of the relief sought and is the equivalent of a final order of the commissioner for the purpose of an appeal under W.S. 26-2-129 .
Any request for hearing the commissioner receives prior to the effective date of action he takes or proposes to take stays the action pending the hearing, except as to action taken or proposed under an order:
1. On hearing;
2. Pursuant to an order on hearing;
3. To make good an impairment of the capital funds of an insurer; or
4. Made pursuant to chapter 14 of this code.
If an automatic stay is not provided for, and if the commissioner after written request therefor fails to grant a stay, the person aggrieved may apply to the district court of Laramie county for a stay of the commissioner’s action.

History. Laws 1967, ch. 136, § 41; W.S. 1957, § 26.1-41; Laws 1983, ch. 190, § 1.

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

§ 26-2-126. Commissioner's hearings; notice of hearing; contents; delivery.

Unless a longer period is expressly provided in this code [title 26], the commissioner shall give written notice of the hearing not less than ten (10) days in advance. If the persons to be given notice are not specified in the provision pursuant to which the hearing is held, the commissioner shall give notice to all persons whose financial interests the hearing directly and immediately affects.
If any person is entitled to a hearing by any provision of law before any proposed action is taken, the notice of the hearing may be in the form of a notice to show cause stating:
1. That the proposed action may be taken unless the person shows cause at a hearing to be held as specified in the notice why the proposed action should not be taken; and
2. The basis of the proposed action.
Notice of hearing shall otherwise be in accordance with W.S. 16-3-107 , except that mailed notice is deemed to have been served when addressed to the person to be notified at his address last of record with the department and deposited, postage paid, in a mail depository of the United States post office.

History. Laws 1967, ch. 136, § 42; W.S. 1957, § 26.1-42; Laws 1983, ch. 190, § 1.

§ 26-2-127. Commissioner's hearings; procedure.

The commissioner shall allow any party to the hearing to:
1. Appear in person and by counsel;
2. Be present during the giving of all evidence;
3. Have a reasonable opportunity to inspect all documentary and other evidence;
4. Examine and cross-examine witnesses;
5. Present evidence in support of his interest; and
6. Have subpoenas issued by the commissioner to compel attendance of witnesses and production of evidence in his behalf.
Upon good cause shown the commissioner shall permit to become a party to the hearing by intervention, if timely, only those persons who were not original parties thereto and whose pecuniary interests are to be directly and immediately affected by the commissioner’s order made upon the hearing.
Hearings in other respects are subject to the Wyoming Administrative Procedure Act [§§ 16-3-101 through 16-3-115 ] as to contested cases.

History. Laws 1967, ch. 136, § 43; W.S. 1957, § 26.1-43; Laws 1983, ch. 190, § 1.

§ 26-2-128. Commissioner's hearings; commissioner's orders after hearing.

Within thirty (30) days after termination of a hearing, or within sixty (60) days after termination if a transcript of the proceedings is to be made, or of any rehearing or reargument thereof, or within any other period as may be specified in this code [title 26] as to particular matters, or within any further period to which the parties consent in writing, the commissioner shall make and enter his order on hearing. Failure of the commissioner to make and enter his order within the period allowed is deemed a denial of the petition, relief or application as to which the hearing was held.
The commissioner shall promptly give a copy of the order to each party to the hearing in the same manner as notice of the hearing was given, except that as to hearings held concerning merger, consolidation, bulk reinsurance or conversion of a domestic insurer as provided for in chapter 24 or in chapter 27 of this code, if notice of the hearing was mailed or given to all stockholders or policyholders, or both, of the insurer or insurers involved, the commissioner is required to give a copy of the order to the corporate or insurer parties, to intervening parties, to a reasonable number of the stockholders or policyholders as representative of the class and to other parties only upon written request of those parties.
The orders are otherwise subject to the Wyoming Administrative Procedure Act [§§ 16-3-101 through 16-3-115 ] as in contested cases.

History. Laws 1967, ch. 136, § 44; W.S. 1957, § 26.1-44; Laws 1983, ch. 190, § 1.

§ 26-2-129. Commissioner's hearings; appeals; procedure; injunctions.

An appeal shall be taken only:
1. From the commissioner’s order on hearing; or
2. As to a matter on which the commissioner fails to:
  1. Hold a hearing after application therefor under W.S. 26-2-125 ; or
  2. Make and enter his order on hearing as required by W.S. 26-2-128 .
All such appeals shall be taken as provided by the Wyoming Administrative Procedure Act [§§ 16-3-101 through 16-3-115 ] for contested cases.
This section does not prohibit recourse to injunction or other appropriate emergency proceedings in proper circumstances.

History. Laws 1925, ch. 146, § 4; R.S. 1931, § 57-304; C.S. 1945, § 52-204; W.S. 1957, §§ 26-51, 26.1-45; Laws 1967, ch. 136, § 45; 1983, ch. 190, § 1.

For decision construing former provision relating to review of commissioner's action, see Farmers Auto. Inter-Insurance Exch. v. MacDonald, 59 Wyo. 352, 140 P.2d 905, 1943 Wyo. LEXIS 20 (Wyo. 1943).

Law reviews. —

See “Scope of Review of Decision of an Administrative Agency in Wyoming,” 9 Wyo. L.J. 65 (1954).

See note, “De Novo Judicial Review of Wyoming Administrative Findings,” 15 Wyo. L.J. 67 (1960).

§ 26-2-130. Cease and desist authority.

The commissioner may issue a cease and desist order if:
1. It appears from specific facts shown by affidavit that a person, as defined by W.S. 26-1-102(a)(xx), is engaging in any act or practice prohibited under this code which is causing or can be reasonably expected to cause significant, imminent and irreparable injury to the insuring public; and
2. That the department has either discussed the matter with the person or has made a good-faith attempt to do so.
Upon issuance of a cease and desist order, the commissioner shall serve upon the person affected by the order, by personal service as defined in rule 4 of the Wyoming Rules of Civil Procedure, or by registered or certified mail, return receipt requested, to the person’s last known address, an order specifically stating the acts complained of and requiring the person to immediately cease and desist from the act, methods or practices stated. The cease and desist order shall have full force and effect as soon as it is received unless stayed by the commissioner pursuant to subsection (d) of this section. The cease and desist order shall be of no effect at the end of the second business day following its issuance unless the commissioner shall have obtained a temporary restraining order, pursuant to rule 65 of the Wyoming Rules of Civil Procedure or the person receiving the order shall have stipulated that it remain in effect pursuant to terms and conditions agreed upon by the commissioner and that person. Thereafter, the commissioner may seek such further orders of the court to enforce the cease and desist order as he deems appropriate or necessary. If a temporary restraining order is sought in accordance with this subsection, the cease and desist order shall remain in effect until the temporary restraining order or any extension thereof is denied, or until the cease and desist order is modified or stayed by an order of the court. The action seeking the temporary restraining order shall be filed in the district court for Laramie county or in the district court for the county in which person affected by the order resides or has his principal place of business.
If the person affected by the cease and desist order seeks to contest the order, the person shall request a hearing before the commissioner not later than ten (10) days after the date on which the person received the order. A request to contest an order shall be in writing, served upon the commissioner by personal service as defined in rule 4 of the Wyoming Rules of Civil Procedure, or by registered or certified mail, and shall state the grounds for the request to set aside or modify the order.
On receiving the request for a hearing, the commissioner shall serve notice of the time and place of the hearing at which the person requesting the hearing shall have the opportunity to show cause why the order should not be affirmed. The hearing shall be held within ten (10) days from the date the request for hearing is received unless mutually waived by the parties or continuance granted by the commissioner for good cause. The cease and desist order shall continue in full force and effect while the hearing is pending unless the order is stayed by the commissioner.
The hearing on the order shall be conducted according to the procedures for contested cases under the Wyoming Administrative Procedure Act.
Within two (2) working days after the hearing, the commissioner shall affirm, modify or set aside, in whole or in part, the cease and desist order.
A cease and desist order shall be final eleven (11) days after the date the order is received by the person if a hearing as provided by subsection (c) of this section is not requested by the person affected by the order.
Any person violating a cease and desist order issued under this section shall be assessed a civil penalty as provided by W.S. 26-1-107(b). If the commissioner reasonably believes that a person has violated a cease and desist order issued under this section, the commissioner may initiate judicial proceedings to enjoin further violation of the order in the district court for Laramie county or in the district court for the county in which the person resides or has his principal place of business.
The commissioner may promulgate reasonable rules and regulations to carry out the purpose of this section.
Any final order, ruling, finding, decision or other act of the commissioner made pursuant to this chapter or this section shall be subject to judicial review in accordance with the Wyoming Administrative Procedure Act.

History. Laws 1991, ch. 126, § 1.

Editor's notes. —

There is no subsection (i) in this section as it appears in the printed acts.

Wyoming Administrative Procedure Act. —

See § 16-3-101(a), (b)(xi).

§ 26-2-131. Immunity from liability.

No cause of action shall arise nor shall any liability be imposed against the commissioner, the commissioner’s authorized representatives or any examiner appointed by the commissioner for any statements made or conduct performed in good faith while carrying out an examination or related activity under the provisions of this chapter.
No cause of action shall arise nor shall any liability be imposed against any person for the act of communicating or delivering information or data to the commissioner, the commissioner’s authorized representative or examiner or law enforcement agencies pursuant to an examination made under this chapter or any other criminal investigation under title 6 of the Wyoming statutes, if the act of communication or delivery was performed in good faith and without fraudulent intent.
Any person identified in subsection (a) or (b) of this section shall be entitled to an award of attorney’s fees and costs if he is a prevailing party in a civil cause of action for libel, slander or any other relevant tort arising out of activities in carrying out an examination or related activity under the provisions of this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section, a proceeding is “substantially justified” if it had a reasonable basis in law or fact at the time it was initiated.

History. Laws 1992, ch. 59, § 1; 2012, ch. 44, § 1.

The 2012 amendment, effective July 1, 2012, in (b), inserted “or law enforcement agencies” and “or any other criminal investigation under title 6 of the Wyoming statutes”; and inserted “or (b)” in (c).

§ 26-2-132. Health benefits plan committee.

The commissioner shall appoint a health benefits plan committee no later than September 30, 1995. The committee shall be composed of seven (7) members, which shall include:
1. The commissioner or his representative;
2. Two (2) representatives of authorized disability insurers writing business in Wyoming;
3. One (1) representative each of:
  1. A small employer as defined by W.S. 26-19-302(a)(xxii);
  2. A consumer;
  3. An insurance agent licensed to sell disability insurance; and
  4. A health care provider as defined by W.S. 26-40-102(a)(i).
The committee shall review on at least a biennial basis the form and level of coverages to be made available under the Small Employer Health Insurance Availability Act [§§ 26-19-301 through 26-19-310 ] and the Wyoming Health Insurance Pool Act [§§ 26-43-101 through 26-43-113 ].
For the Small Employer Health Insurance Availability Act, the committee shall recommend benefit levels, cost sharing factors, exclusions and limitations for the basic health benefit plan and the standard health benefit plan. One (1) basic health benefit plan and one (1) standard health benefit plan shall contain benefit and cost sharing levels that are consistent with the basic method of operation and the benefit plans of all health benefit plans, including any restrictions imposed by state or federal law. The plans recommended by the committee may include cost containment features such as, but not limited to:
1. Utilization review of health care services, including review of medical necessity of hospital and physician services;
2. Case management benefit alternatives;
3. Reasonable benefit differentials applicable to participating and nonparticipating providers; and
4. Other managed care provisions.
The committee shall submit its review of the plans and any recommendation for modification of the plans to the commissioner for approval within one hundred eighty (180) days after the appointment of the committee pursuant to this section and at least biennially thereafter. If the commissioner disapproves of the plans or modifications thereto in whole or in part he shall submit alternative interim plans to the committee for its approval.
For the Wyoming health insurance pool, the committee shall recommend the pool coverage, its schedule of benefits, exclusions, preexisting condition limitations and other limitations consistent with the Wyoming Health Insurance Pool Act.
Members of the committee shall be reimbursed from the assets of the programs for expenses incurred by them as members of the committee but shall not otherwise be compensated by the programs for their services. The programs shall each pay one-half (1/2) of the expenses of the committee.
Committee meetings shall be open to the public.

History. Laws 1995, ch. 94, § 1.

§ 26-2-133. Disclosure of nonpublic personal information; rulemaking; rulemaking authority limited.

The commissioner is authorized to adopt rules necessary to govern the practices of all persons licensed under this code with respect to the disclosure of nonpublic personal financial and health information of insurance consumers and customers. The rules shall prohibit the disclosure of any nonpublic personal information contrary to the provisions of title V of the Gramm-Leach-Bliley Act of 1999, P.L. 106-102.
Repealed by Laws 2007, ch. 43, § 1.

History. Laws 2001, ch. 202, § 1; 2007, ch. 43, § 1.

Federal law. —

Title V of the Gramm-Leach Bliley Act of 1999, P.L. 106-102, is codified as 15 U.S.C.S. § 6801 et seq.

The 2007 amendment, effective July 1, 2007, repealed former subsection (b), which read: “Unless specifically reauthorized by the legislature prior to July 1, 2007, rules and regulations promulgated under subsection (a) of this section prior to July 1, 2007, shall on and after July 1, 2007, be null and void and of no effect and shall not be enforceable.”

§ 26-2-134. Limiting the use of credit scoring; rulemaking.

The commissioner is authorized to adopt rules as necessary to govern the practices of all persons licensed under this code with respect to the use of credit scoring in the underwriting of personal lines, motor vehicles and homeowner policies. The rules shall provide:
1. That a person’s credit history or scoring shall not be the sole basis to cancel, deny or nonrenew an insurance policy. An insurer may use credit history only in combination with other valid underwriting factors independent of credit history or score;
2. That an insurer shall provide notice to the person when credit scoring is being used to underwrite a policy and when use of credit scoring is adverse to the person;
3. That the consumer is adequately protected against unfair discrimination in the use of credit scoring to underwrite policies.

History. Laws 2003, ch. 102, § 1.

Editor's notes. —

There is no subsection (b) as it appears in the printed acts.

Meaning of “this code.” —

For the definition of “this code,” referred to in this section, see § 26-1-102(a)(xxxii).

Article 2. Funding

§ 26-2-201. Deposit of fees.

The state treasurer shall place all fees received by the commissioner as provided in W.S. 26-2-205(c) in the state general fund.

History. Laws 1988, ch. 62, § 1.

§ 26-2-202. Expenditures of the department.

The state treasurer shall make payments on warrants drawn by the state auditor, upon vouchers issued and signed by the commissioner or his designee, for expenditures required to carry out the functions of the department pursuant to the appropriations authorized the department by law.

History. Laws 1988, ch. 62, § 1.

§ 26-2-203. Agents' licensing program exempt. [Repealed]

History. Laws 1988, ch. 62, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-2-204. Insurers assessed for department expenditures.

In addition to any other tax, license or fee imposed by law, each authorized insurer shall pay to the commissioner on or before June 1 of each year a fee for the privilege of transacting the business of insurance in this state, computed as follows:
1. On or before April 1 of each year, the commissioner, with the governor’s approval, shall estimate the expenditures of the department for the fiscal year commencing July 1, including the expense of any regularly scheduled association, zone, triannual or similar periodic statutorily scheduled financial examination of any authorized insurer, provided that neither the actual expenditures nor estimated expenditures of a fiscal year within the same biennial budget for the department shall not exceed the amount appropriated to the department by law; and
2. The commissioner shall then divide the estimated amount of expenditures, after deducting therefrom any expected unexpended funds in the account of the insurance department, by the total number of insurers then authorized to transact insurance in this state as of December 31 of the immediately preceding year. The result of this computation is the amount of the fee the commissioner shall assess each insurer.
Upon receiving a statement of assessment from the commissioner, each authorized insurer shall promptly pay the fee to the commissioner.

History. Laws 1988, ch. 62, § 1.

§ 26-2-205. Time for payment; penalties.

If any insurer does not pay the assessment on or before June 1 of the year in which assessed or as otherwise ordered pursuant to W.S. 26-2-208 , the assessment is delinquent. If the assessment is delinquent, the commissioner may suspend or revoke the insurer’s certificate of authority.
The suspension shall continue until the assessment is paid together with an additional fee of ten dollars ($10.00) for each day the fee remains delinquent after June 1. The penalty for late payment is in addition to any other penalties provided by this code.
The commissioner shall deposit all sums collected under this section with the state treasurer for credit to the general fund.

History. Laws 1988, ch. 62, § 1.

Meaning of “this code.” —

For the definition of “this code,” referred to in this section, see § 26-1-102(a)(xxxii).

§ 26-2-206. Newly authorized insurers.

Any insurer becoming first authorized after December 31 shall pay to the commissioner the amount determined pursuant to W.S. 26-2-204 prior to the commissioner issuing it a certificate of authority. The commissioner shall deposit the fee as provided by W.S. 26-2-204 .
This section does not apply to any insurer first authorized after December 31, 1987, but before March 31, 1988.

History. Laws 1988, ch. 62, § 1.

§ 26-2-207. Other powers unaffected.

Nothing in this article alters or amends the commissioner’s authority, obligations or duties under W.S. 26-2-116 through 26-2-125 , nor does this article exempt an insurer examined by the department pursuant to W.S. 26-2-116 (b) from the payments required under W.S. 26-2-122(b).

History. Laws 1988, ch. 62, § 1.

§ 26-2-208. Additional assessment authorized.

If it appears to the commissioner that the total amount of assessments actually collected will not equal the authorized expenditures of the department for any biennial appropriation period, with the governor’s approval, he shall make any additional assessments upon authorized insurers which will eliminate the deficiency. Any additional assessments are subject to all provisions of this article as if they were original assessments under W.S. 26-2-204 .

History. Laws 1988, ch. 62, § 1.

§ 26-2-209. Deduction allowed for retaliation.

Notwithstanding any other law, if any domestic insurer is required to pay additional taxes or fees to some other jurisdiction because of this article under the color of a retaliatory statute or other similar law, the insurer may deduct the additional taxes or fees from the premium taxes otherwise payable under W.S. 26-4-103 .

History. Laws 1988, ch. 62, § 1; 1990, ch. 19, § 1; 2004, ch. 130, § 1.

The 2004 amendment deleted “and 26-4-104 ” at the end.

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

Conflicting legislation. —

Laws 2004, ch. 130, § 3, provides: “Any other act adopted by the Wyoming legislature during the same session in which this act is adopted shall be given precedence and shall prevail over the amendments in this act to the extent that such acts are in conflict with this act.”

Chapter 3 Authorization of Insurers and General Requirements

Cross references. —

For general provisions concerning assets and liabilities of insurers, see §§ 26-6-101 through 26-6-305 .

As to Risk-Based Capital for Health Organizations, see §§ 26-48-201 et seq.

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance §§ 35 to 48, 49 to 65.

Liability of insurance agent to insurer because of failure to comply with instructions as to cancellation of policy or reduction of risks, 35 ALR3d 792.

When is termination of insurance agency contract wrongful, so as to make insurer liable to agent, 5 ALR4th 1080.

What constitutes insolvency of insurance company justifying state dissolution proceedings and the like, 17 ALR4th 16.

Liability of insurer or agent of insurer for failure to advise insured as to coverage needs, 88 ALR4th 249.

44 C.J.S. Insurance §§ 31 to 122.

Article 1. In General

§ 26-3-101. Certificate of authority required.

No person shall act as an insurer and no insurer shall transact insurance in this state unless authorized by a subsisting certificate of authority granted by the commissioner, except as to transactions expressly otherwise provided in this code [title 26].
No insurer shall solicit insurance applications or otherwise transact insurance in another state or country, from offices or by personnel located in this state, unless it holds a subsisting certificate of authority granted by the commissioner authorizing it to transact the same kinds of insurance in this state.

History. Laws 1877, p. 67, § 24; 1884, ch. 48, § 3; R.S. 1887, § 626; R.S. 1899, § 3176; C.S. 1910, § 4124; C.S. 1920, § 5268; R.S. 1931, § 57-426; C.S. 1945, § 52-1027; W.S. 1957, §§ 26-20, 26.1-50; Laws 1967, ch. 136, § 50; W.S. 1977, § 26-3-105 ; Laws 1983, ch. 190, § 1.

For case construing repealed provision requiring certificate of authority, see State ex rel. Coddington v. Loucks, 30 Wyo. 485, 222 P. 37, 1924 Wyo. LEXIS 72 (Wyo. 1924).

Quoted in

Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980).

§ 26-3-102. When certificate not required.

A certificate of authority is not required of an insurer for:
1. Investigation, settlement or litigation of claims under its policies lawfully written in this state, or liquidation of its assets and liabilities, other than collection of new premiums, all resulting from its authorized operations in this state;
2. Transactions thereunder subsequent to issuance of a policy covering only subjects of insurance not resident, located or expressly to be performed in this state at time of issuance and lawfully solicited, written and delivered outside this state;
3. Transactions pursuant to coverages lawfully written under chapter 11 of this code;
4. Reinsurance, except as to domestic reinsurers.
An insurer not transacting new insurance business in Wyoming but continuing collection of premiums on and servicing policies remaining in force as to residents of or risks located in Wyoming is transacting insurance in Wyoming for the purpose of premium tax requirements only and is not required to have a certificate of authority. This subsection does not apply to insurers which withdrew from Wyoming prior to May 21, 1955.

History. Laws 1967, ch. 136, § 51; W.S. 1957, § 26.1-51; W.S. 1977, § 26-3-106 ; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2.

The 2012 amendment, deleted “surplus lines” after “pursuant to” in (a)(iii).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

Quoted in

Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980).

§ 26-3-103. General qualifications for authority to transact business.

To transact insurance in this state an insurer shall be in compliance with this code [title 26], and its charter powers and shall be an incorporated stock insurer, an incorporated mutual insurer or a reciprocal insurer of the same general type as may be formed as a domestic insurer under this code.
No foreign insurer shall be authorized to transact insurance or business on the mutual assessment plan, stipulated premium plan or any similar plan in this state if that insurer does not maintain reserves as required by chapter 6 of this code as applicable to the kinds of insurance or business transacted, wherever transacted in the United States. This prohibition does not apply to mutual or reciprocal insurers doing business on the cash premium plan but providing for contingent liability of policyholders or subscribers.

History. Laws 1967, ch. 136, § 52; W.S. 1957, § 26.1-52; W.S. 1977, § 26-3-107 ; Laws 1983, ch. 190, § 1.

§ 26-3-104. Insurers not qualified to transact business in state; credit and investigation reports.

No foreign insurer owned or controlled in any manner or degree by any government or governmental agency shall be authorized to transact insurance in Wyoming. Membership in a mutual insurer, or subscribership in a reciprocal insurer, or ownership of stock of an insurer by the alien property custodian or similar official of the United States, or ownership of stock or other security which does not have voting rights with respect to the insurer’s management, or supervision of an insurer by public authority, is not ownership or control of the insurer for the purposes of this subsection.
The commissioner shall not grant or continue authority to transact insurance in this state as to any insurer the management of which, after investigation or upon reliable information, he finds:
1. Is incompetent or untrustworthy;
2. So lacking in insurance company managerial experience as to make a proposed operation hazardous to the insurance-buying public; or
3. Is affiliated through ownership, control reinsurance or other insurance or business relations with any person whose business operations are or have been marked by manipulation of assets, accounts or reinsurance, or by bad faith.
Before granting a certificate of authority to a new domestic insurer, the commissioner shall secure a credit and investigation report as to the insurer’s management personnel and directors from a recognized and established independent investigation and reporting agency. The commissioner may secure a similar report relative to the management of any other insurer at any time he deems advisable.

History. Laws 1967, ch. 136, § 53; W.S. 1957, 26.1-53; W.S. 1977, § 26-3-108 ; Laws 1983, ch. 190, § 1.

§ 26-3-105. Qualification of new foreign insurers.

No foreign insurer is authorized to transact insurance in Wyoming if that insurer has not been issuing its own policies as an authorized insurer for at least two (2) years, unless the insurer is otherwise qualified for a certificate of authority under this code and is:
1. The wholly owned subsidiary or affiliate of an insurer which is already an authorized insurer in Wyoming and the subsidiary or affiliate shares common management and business operations with the insurer;
2. The successor in interest through statutory merger or statutory consolidation, or through bulk reinsurance of substantially all of the insurance risks in this state, of an authorized insurer; or
3. An insurer seeking authority to write a line of insurance for which, in the commissioner’s opinion:
  1. Adequate provision is not made by insurers already authorized in this state; or
  2. Adequate competition between insurers does not exist in this state.
No foreign insurer shall continue to hold a certificate of authority under W.S. 26-3-114 if the insurer has reinsured substantially all of its insurance risks either prior to, contemporaneously with or after being acquired by another insurer not holding a subsisting certificate of authority in this state.

History. Laws 1967, ch. 136, § 54; W.S. 1957, § 26.1-54; Laws 1977, ch. 131, § 1; W.S. 1977, § 26-3-109 ; Laws 1983, ch. 190, § 1; 2018 ch. 21, § 1, effective March 9, 2018.

The 2018 amendment, in (a), deleted “in its state or country of domicile” following “two (2) years”; in (a)(i), inserted “or affiliate” following “owned subsidiary” and added “and the subsidiary or affiliate shares common management and business operations with the insurer” at the end; in (a)(iii), substituted “insurer seeking authority to write a line of insurance for which” for “insurer organized solely for the purpose of insuring against earthquake, flood, nuclear radiation, war or other special hazards to property or liability for which”; redesignated the former ending text of (a)(iii) as (a)(iii)(A); added (a)(iii)(B); and made stylistic changes.

Laws 2018, ch. 21, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 9, 2018.

§ 26-3-106. Conflict of names prohibited.

No insurer shall be formed or authorized to transact insurance in this state if that insurer has or uses a name which:
1. Is the same as or deceptively similar to that of another insurer already authorized;
2. In the case of a life insurer is deceptively similar to that of another insurer authorized to transact insurance in this state within the immediately preceding ten (10) years, if life insurance policies originally issued by the other insurer are still outstanding in this state;
3. Is the same as or deceptively similar to the name of any foreign insurer not so authorized if the foreign insurer has within the immediately preceding twelve (12) months signified its intention to secure an incorporation in this state under that name or to do business as a foreign insurer in this state under that name by filing notice of intention with the commissioner, unless the foreign insurer gives written consent to the use of the name or deceptively similar name; or
4. Tends to deceive or mislead as to the insurer’s type of organization.
In case of conflict of names between two (2) insurers, or a conflict otherwise prohibited under this section, the commissioner may permit, or shall require as a condition to the issuance of an original certificate of authority to an applicant insurer, the insurer to use in this state a modified name as may reasonably be necessary to avoid the conflict.

History. Laws 1877, p. 64, § 19; R.S. 1887, § 621; R.S. 1899, § 3173; C.S. 1910, § 4119; C.S. 1920, § 5263; R.S. 1931, § 57-421; C.S. 1945, § 52-1021; W.S. 1957, §§ 26-9, 26.1-55; Laws 1967, ch. 136, § 55; W.S. 1977, § 26-3-110 ; Laws 1983, ch. 190, § 1.

§ 26-3-107. Insurer may be authorized to transact combination of kinds of insurance; exceptions.

A qualified insurer may be authorized to transact one (1) or more kinds of insurance as defined in chapter 5 of this code [title 26], except:
1. A life insurer may grant annuities and may be authorized to transact disability insurance, except that the commissioner may continue to authorize any qualified life insurer which immediately prior to January 1, 1968 was lawfully authorized to transact in this state any kinds of insurance in addition to life and disability insurances and annuity business;
2. A reciprocal insurer shall not transact life insurance;
3. A title insurer shall be a stock insurer and shall not transact any other kind of insurance.

History. Laws 1967, ch. 136, § 56; W.S. 1957, § 26.1-56; W.S. 1977, § 26-3-111 ; Laws 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-3-108. Capital and surplus requirements.

To qualify for authority to transact any kind of insurance as defined in chapter 5 or combination of kinds of insurance as specified in this subsection, a foreign insurer, or a domestic stock insurer applying for its original certificate of authority, shall possess and thereafter maintain unimpaired basic paid-in capital stock and surplus, if a stock insurer, or unimpaired basic surplus, if a foreign mutual insurer or foreign reciprocal insurer, in an amount not less than as follows:
Kind or kinds Stock Insurers Foreign Mutual Insurers Foreign Reciprocal Insurers of Insurance Capital Stock Surplus Surplus Surplus Life $1,000,000. $ 500,000. $1,500,000. Disability 1,000,000. 500,000. 1,500,000. $1,500,000. Life & disability 1,000,000. 1,000,000. 2,000,000. Property 1,000,000. 1,000,000. 2,000,000. 2,000,000. CasualtyExcluding Surety 1,000,000. 1,000,000. 2,000,000. 2,000,000. IncludingSurety 1,000,000. 1,500,000. 2,500,000. 2,500,000. Marine &Transportation 1,000,000. 1,000,000. 2,000,000. 2,000,000. Multiple line(Property andany additionalkind) 2,000,000. 2,000,000. 4,000,000. 4,000,000. Title 500,000. 250,000.

Click to view
Capital and surplus requirements are based upon all the kinds of insurance the insurer transacts in any areas in which it operates or proposes to operate, whether or not only a portion of the kinds are to be transacted in Wyoming.
As to surplus required for qualification to transact one (1) or more kinds of insurance and thereafter to be maintained, domestic mutual insurers are governed by chapter 24 of this code [title 26] and domestic reciprocal insurers are governed by chapter 27 of this code.
The commissioner may require additional capital and surplus above the minimum capital and surplus requirements set forth in this section, or any other section of this code based upon the type, volume and nature of the insurance business transacted.

History. Laws 1877, p. 56, § 3; p. 66, § 23; 1884, ch. 48, §§ 3, 5; R.S. 1887, §§ 605, 625; R.S. 1899, §§ 3157, 3178; C.S. 1910, §§ 4103, 4122; Laws 1915, ch. 31, § 1; 1917, ch. 92, § 3; C.S. 1920, §§ 5245, 5266; Laws 1925, ch. 147, § 2; 1931, ch. 16, §§ 1, 2; R.S. 1931, §§ 57-403, 57-424; C.S. 1945, §§ 52-1003, 52-1025; Laws 1949, ch. 63, § 1; 1953, ch. 186, §§ 1 to 3; W.S. 1957, §§ 26-11, 26-19, 26.1-57; Laws 1961, ch. 72, § 1; 1967, ch. 136, § 57; 1977, ch. 131, § 1; W.S. 1977, § 26-3-112 ; Laws 1983, ch. 190, § 1; 1985, ch. 38, § 1; 1992, ch. 59, § 2.

For cases construing similar statute, now repealed, see Edwards v. Johnston, 23 Wyo. 384, 152 P. 273, 1915 Wyo. LEXIS 38 (Wyo. 1915); Farmers Auto. Inter-Insurance Exch. v. MacDonald, 59 Wyo. 352, 140 P.2d 905, 1943 Wyo. LEXIS 20 (Wyo. 1943).

§ 26-3-109. Delayed compliance with capital and surplus requirements.

A domestic or foreign insurer holding a valid certificate of authority to transact insurance in this state as of April 1, 1985, may continue to transact the kinds of insurance permitted by the certificate of authority by complying with this code and by maintaining unimpaired not less than the same amount of paid-in capital stock or paid-in capital stock and surplus, if a stock insurer, or not less than the same amount of surplus, if a mutual insurer, as required under the laws of this state for that authority immediately prior to that date, and as if the laws had continued in force.
An insurer specified in subsection (a) of this section shall not be granted authority to transact any other or additional kinds of insurance unless it then fully complies with the capital and surplus requirements applied to all the kinds of insurance it then proposes to transact, as provided under W.S. 26-3-108 as to new domestic insurers.

History. Laws 1967, ch. 136, § 58; W.S. 1957, § 26.1-58; Laws 1977, ch. 131, § 1; W.S. 1977, § 26-3-113 ; Laws 1983, ch. 190, § 1; 1985, ch. 38, § 1.

Meaning of “this code.” —

For the definition of “this code,” referred to in subsection (a), see § 26-1-102(a)(xxxii).

§ 26-3-110. Additional kinds of insurance authorized for certain insurers.

Without additional capital or additional surplus, an authorized insurer is also authorized:
1. If a life insurer, to grant annuities;
2. If a disability insurer, to insure against congenital defects as defined in W.S. 26-5-106(a)(xii);
3. If a casualty insurer, to transact also disability insurance;
4. If a property insurer, to include an amount and kind of insurance against legal liability for injury, damage or loss to the person or property of others, and for medical, hospital and surgical expense related to that injury, as the commissioner deems to be reasonably incidental to insurance of real property against fire and other perils under policies covering farm properties, or residential properties designed for occupancy by not more than four (4) families, with or without incidental office, professional, private school or studio occupancy by an insured, whether or not the premium or rate charged for certain perils so covered is specified in the policy.
Paragraphs (a)(iii) and (iv) of this section do not apply to domestic insurers authorized pursuant to W.S. 26-3-109(a).

History. Laws 1967, ch. 136, § 59; W.S. 1957, § 26.1-59; W.S. 1977, § 26-3-114 ; Laws 1983, ch. 190, § 1.

§ 26-3-111. Deposit required of insurers.

The commissioner shall not authorize an insurer to transact insurance in this state unless it makes and thereafter continuously maintains in trust in this state through the commissioner, or in another state as provided in subsection (b) of this section, for the protection of all its policyholders and creditors a deposit of cash or securities eligible for deposit under W.S. 26-8-103 of a value not less than the amount applicable to the kinds of insurance the insurer transacts as follows: Minimum Kind(s) of insurance Amount of deposit Life $200,000.00 Disability 100,000.00 Life & disability 200,000.00 Property 100,000.00 Casualty Excluding surety 100,000.00 Including surety 150,000.00 Multiple line 200,000.00 Hail-crop 100,000.00 Title Domestic insurers 50,000.00 Foreign insurers 100,000.00 Click to view
As to foreign insurers, instead of the deposit or part thereof in this state, the commissioner shall accept the certificate in proper form of the public official having supervision over insurers in any other state to the effect that a like deposit or part thereof by the insurer is being maintained in public custody or control pursuant to law in the other state in trust for the protection of all its policyholders wherever located, or of all its policyholders in the United States, or all of its policyholders and creditors in the United States. All such deposits shall be in cash or securities, or both, of a quality not less than those eligible for deposit in this state under W.S. 26-8-103 .
A property insurer also writing hail-crop coverages is required to have only the deposit applicable to property insurance. Instead of the hail-crop deposit, a domestic mutual hail-crop insurer, upon the commissioner’s approval, may file with the commissioner and maintain reinsurance of all risk under all of the insurer’s hail-crop policies. The reinsurer shall be qualified for a certificate of authority as a stock property insurer under this code, and the reinsurance agreement shall provide for payment by the reinsurer of one hundred percent (100%) of all losses under hail-crop policies issued by the ceding insurer without assessment of policyholders of the ceding insurer.
All deposits in this state are subject to the applicable provisions of chapter 8 of this code [title 26].
In addition to deposits required or maintained by foreign insurers, the commissioner may require any foreign insurer to make and maintain in trust in this state, through the commissioner, a deposit of cash or securities eligible for deposit under W.S. 26-8-103 , of a value not less than an amount which the commissioner specifies, for the sole protection of an insurer’s policyholders located in this state. All additional deposits are subject to the applicable provisions of chapter 8 of this code.

History. Laws 1877, p. 66, § 23; 1884, ch. 48, § 3; R.S. 1887, § 625; R.S. 1899, § 3178; C.S. 1910, § 4122; Laws 1917, ch. 92, § 3; C.S. 1920, § 5266; Laws 1925, ch. 147, § 2; 1931, ch. 16, §§ 1, 2; R.S. 1931, § 57-424; C.S. 1945, § 52-1025; Laws 1949, ch. 63, § 1; 1953, ch. 186, §§ 1 to 3; W.S. 1957, §§ 26-19, 26.1-60; Laws 1967, ch. 136, § 60; 1977, ch. 131, § 1; W.S. 1977, § 26-3-115 ; Laws 1979, ch. 47, § 1; 1983, ch. 190, § 1.

§ 26-3-112. Certificate of authority; application; contents of application.

An insurer shall apply to the commissioner for an original certificate of authority, stating under oath of the president, or vice-president or other chief officer and the secretary of the insurer, or of the attorney-in-fact if the insurer is a reciprocal insurer, the insurer’s name, location of its home office, or principal office in the United States if an alien insurer, the kinds of insurance to be transacted, date of organization or incorporation, form of organization, state or country of domicile and any additional information the commissioner reasonably requires. The application shall be accompanied by the applicable fees as provided in W.S. 26-4-101 together with the following documents, as applicable:
1. If a corporation, a current, complete copy of its charter or articles of incorporation currently certified by the public official with whom the originals are on file;
2. If a domestic incorporated insurer or a mutual insurer, a current, complete copy of its bylaws, certified by the insurer’s corporate secretary;
3. If a reciprocal insurer, a current, complete copy of the power of attorney of its attorney-in-fact, certified by the attorney-in-fact;
4. If a domestic reciprocal insurer, the declaration provided for in W.S. 26-27-107(b);
5. A complete copy of its financial statement as of not earlier than the December 31 immediately preceding in “convention” form, sworn to by at least two (2) executive officers of the insurer or certified by the public insurance supervisory official of the insurer’s state of domicile or of entry into the United States if an alien insurer;
6. A copy of the report of last examination made of the insurer as of a date within not more than the sixty (60) months immediately preceding, certified by the Wyoming insurance department or by the public insurance supervisory official of the insurer’s state of domicile or state of entry into the United States if an alien insurer;
7. Acceptance of the constitution of the state of Wyoming, upon a form the commissioner furnishes for that purpose;
8. Appointment of the commissioner pursuant to W.S. 26-3-121 as its attorney to receive service of legal process;
9. If a foreign insurer a certificate:
  1. Of the public insurance supervisory official of its state or country of domicile showing that it is authorized to transact in that state or country the kinds of insurance proposed to be transacted in this state;
  2. As to deposit if to be tendered pursuant to W.S. 26-3-111(b).
10. If an alien insurer, a copy of the appointment and authority of its United States manager, certified by its officer having custody of its records;
11. Repealed by Laws 2018, ch. 21, § 2.
12. Designation by the insurer of its officer or representative authorized to appoint and remove its agents in this state.

History. Laws 1967, ch. 136, § 61; W.S. 1957, § 26.1-61; Laws 1977, ch. 131, § 1; W.S. 1977, § 26-3-116 ; Laws 1983, ch. 190, § 1; 1987, ch. 8, § 1; 1989, ch. 58, § 1; 2006, ch. 114, § 1; 2018 ch. 21, §§ 1, 2, effective March 9, 2018.

The 2006 amendment, deleted “and” at the end of (a)(iii).

Laws 2006, ch. 114, § 5, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 24, 2006.

The 2018 amendments.— The first 2018 amendment, by ch. 21, § 1, in (a)(vi), substituted “sixty (60) months” for “thirty-six (36) months.”

The second 2018 amendment, by ch. 21, § 2, repealed former (a)(xi), which read: “If a life or disability insurer, a copy of the insurer's rate book and of each form of policy currently proposed to be issued in this state.”

Laws 2018, ch. 21, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 9, 2018.

While neither amendment gave effect to the others, all have been given effect in this section as set out above.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Conflicting legislation. —

Laws 2006, ch. 114, § 3, provides: “[A]ny other act adopted by the Wyoming legislature during the same session in which this act is adopted shall be given precedence and shall prevail over the amendments in this act to the extent that such acts are in conflict with this act.”

§ 26-3-113. Certificate of authority; issuance; contents; delivery; return.

If the commissioner finds that the insurer meets the certificate requirements under this code [title 26], he shall issue to the insurer a proper certificate of authority. If he finds the insurer does not meet the certificate requirements, the commissioner shall issue his order refusing the certificate. The commissioner shall act upon an application for certificate of authority within a reasonable period after its completion.
The certificate, if issued, shall specify the kinds of insurance the insurer is authorized to transact in Wyoming. At the insurer’s request the commissioner may issue a certificate of authority limited to particular types of insurance or coverages within the scope of a kind of insurance as defined in chapter 5 of this code.
Although issued and delivered to the insurer, the certificate of authority at all times is the property of this state. Upon expiration, suspension or termination of the certificate, the insurer shall promptly deliver the certificate to the commissioner.

History. Laws 1967, ch. 136, § 62; W.S. 1957, § 26.1-62; W.S. 1977, § 26-3-117 ; Laws 1983, ch. 190, § 1.

§ 26-3-114. Certificate of authority; continuation; expiration; reinstatement.

A certificate of authority issued under this code [title 26] continues in force until suspended or revoked by the commissioner or terminated at the insurer’s request, subject to continuance by the insurer each year by:
1. Payment prior to March 1 of the continuation fee provided in W.S. 26-4-101 ;
2. Filing by the insurer of its annual statement for the immediately preceding calendar year as required by W.S. 26-3-123 ; and
3. Payment by the insurer of premium taxes for the immediately preceding calendar year as required by W.S. 26-4-103 .
If not continued, an insurer’s certificate of authority expires at midnight on May 31 immediately following the insurer’s failure to continue it in force, unless earlier revoked for failure to pay taxes as provided in W.S. 26-4-105(b). The commissioner shall promptly notify the insurer of any impending expiration of its certificate of authority.
The commissioner, upon the insurer’s request made within three (3) months after expiration, may reinstate a certificate of authority which the insurer has permitted to expire, after the insurer has:
1. Cured all failures which resulted in the expiration; and
2. Paid the reinstatement fee specified in W.S. 26-4-101 .
If an insurer fails to renew its certificate of authority within the time specified in subsection (c) of this section, another certificate shall be issued only after all requirements for an original certificate of authority in this state are fulfilled.

History. Laws 1967, ch. 136, § 63; W.S. 1957, § 26.1-63; W.S. 1977, § 26-3-118 ; Laws 1983, ch. 190, § 1; 2004, ch. 130, § 1.

The 2004 amendment, in (a)(iii), deleted “and 26-4-104 ” at the end.

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

Conflicting legislation. —

§ 26-3-115. Suspension, revocation of certificate of authority; mandatory grounds; hearing required.

The commissioner shall refuse to continue or shall suspend or revoke an insurer’s certificate of authority if:
1. That action is required by any provision of this code [title 26];
2. A foreign insurer and it no longer meets the capital and surplus requirements specified in W.S. 26-3-108 , or is otherwise unqualified;
3. A domestic insurer and it has failed to cure a capital or surplus impairment within the time the commissioner allows under this code, or is otherwise unqualified; or
4. The insurer’s certificate of authority to transact insurance is suspended or revoked by its state of domicile, or state of entry into the United States if an alien insurer.
Notwithstanding W.S. 16-3-113 , in case of insolvency or impairment of required capital or surplus, or suspension or revocation by another state, the commissioner shall refuse, suspend or revoke the certificate of authority without a prior hearing. In all other cases the commissioner shall refuse, suspend or revoke the certificate of authority only after a hearing, unless the insurer waives the hearing in writing.

History. Laws 1877, p. 70, § 31; 1884, ch. 48, § 3; R.S. 1887, § 633; R.S. 1899, § 3185; C.S. 1910, § 4131; C.S. 1920, § 5275; R.S. 1931, § 57-432; C.S. 1945, § 52-1033; W.S. 1957, §§ 26-35, 26.1-64; Laws 1967, ch. 136, § 64; 1977, ch. 131, § 1; W.S. 1977, § 26-3-119 ; Laws 1983, ch. 190, § 1.

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

§ 26-3-116. Suspension and revocation of certificate of authority; discretionary and special grounds.

The commissioner may refuse to continue or may suspend or revoke an insurer’s certificate of authority if he finds after a hearing that the insurer has:
1. Violated or failed to comply with any lawful order of the commissioner;
2. Willfully violated or failed to comply with any lawful regulation of the commissioner; or
3. Violated any provision of this code [title 26] other than those for violation of which suspension or revocation is mandatory.
The commissioner shall suspend or revoke an insurer’s certificate of authority on any of the following grounds if he finds after a hearing that the insurer:
1. Is in unsound condition, or in such condition or using any methods and practices in the conduct of its business as to render its further transaction of insurance in this state injurious to policyholders or to the public;
2. With such frequency as to indicate its general business practice in this state has without just cause:
  1. Failed to pay claims arising under its policies, whether the claim is in favor of an insurer or is in favor of a third person with respect to the liability of an insured to that third person;
  2. Delayed payment of claims; or
  3. Compelled insureds or claimants to accept less than the amount due them, or to employ attorneys or to bring suit against the insurer or an insured to secure full payment or settlement of claims.
3. Is affiliated with and under the same general management, or interlocking directorate, or ownership as another insurer which transacts direct insurance in this state without having a certificate of authority therefor, except as permitted under this code;
4. Refuses to be examined, or if its directors, officers, employees or representatives refuse to:
  1. Submit to examination relative to its affairs;
  2. Produce its accounts, records and files for the commissioner’s examination when required; or
  3. Perform any legal obligation relative to the examination.
5. Failed to pay any final judgment rendered against it in this state upon any policy, bond, recognizance or undertaking issued or guaranteed by it, within thirty (30) days after the judgment became final, or within thirty (30) days after dismissal of an appeal before final determination, whichever date is later.
In determining whether the continued operation of any insurer transacting insurance business in this state is hazardous or injurious to policyholders, creditors or the general public the commissioner may consider any of the following:
1. Adverse findings reported in financial condition and market conduct examination reports, audit reports and actuarial opinions, reports or summaries;
2. The National Association of Insurance Commissioners’ Insurance Regulatory Information System and its other financial analysis solvency tools and reports;
3. Repealed by Laws 2012, ch. 38, § 3.
4. Whether the insurer has made adequate provision, according to presently accepted actuarial standards of practice, for the anticipated cash flows required by the contractual obligations and related expenses of the insurer, when considered in light of the assets held by the insurer with respect to such reserves and related actuarial items including, but not limited to, the investment earnings on such assets, and the considerations anticipated to be received and retained under such policies and contracts;
5. The ability of any assuming reinsurer of the insurer to perform and whether the insurer’s reinsurance program provides sufficient protection for the insurer’s remaining surplus after taking into account the insurer’s cash flow and the classes of business written and the financial condition of the assuming reinsurer;
6. Whether the insurer’s operating loss in the last twelve (12) month period or any shorter period of time is greater than fifty percent (50%) of the insurer’s remaining surplus as regards policyholders in excess of the minimum required. For purposes of this paragraph, “operating loss” shall include, but not be limited to net capital gain or loss, change in nonadmitted assets and cash dividends paid to shareholders;
7. Any affiliate’s, subsidiary’s, parent’s, obligor’s or reinsurer’s insolvency, threatened insolvency or delinquency in payment of its monetary or other obligations and which in the opinion of the commissioner may affect the solvency of the insurer;
8. Contingent liabilities, pledges or guaranties which either individually or collectively involve a total amount which in the opinion of the commissioner may affect the solvency of the insurer;
9. The delinquency of any “controlling person” of an insurer in transmitting or paying net premiums to the insurer. For purposes of this paragraph, “controlling person” means any person who directly or indirectly has the power to direct the management, control or activities of the insurer;
10. The age of receivables and the ability to collect receivables;
11. The failure of an insurer’s management, including officers, directors, or any other person who directly or indirectly controls the operation of the insurer, to possess and demonstrate the competence, fitness and reputation necessary to serve the insurer in such position;
12. An insurer’s management’s failure to respond to inquiries relative to the condition of the insurer or an insurer’s management’s furnishing false and misleading information concerning an inquiry;
13. An insurer’s management’s:
  1. Filing of any false or misleading sworn financial statement;
  2. Release of false or misleading financial statements to lending institutions or to the general public; or
  3. Making of a false or misleading entry, or omitting an entry of material amount in the books of the insurer.
14. An insurer’s rapid growth to such an extent that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner;
15. An insurer’s past or foreseeable future experience of cash flow or liquidity problems;
16. Whether the insurer’s operating loss in the last twelve (12) month period or any shorter period of time, excluding net capital gains, is greater than twenty percent (20%) of the insurer’s remaining surplus as regards policyholders in excess of the minimum required;
17. Whether the insurer has failed to meet financial and holding company filing requirements in the absence of a reason satisfactory to the commissioner;
18. Whether management has established reserves that do not comply with minimum standards established by state insurance laws, regulations, statutory accounting standards, sound actuarial principles or standards of practice;
19. Whether management persistently engages in material underreserving that results in adverse development;
20. Whether transactions among affiliates, subsidiaries or controlling persons for which the insurer receives assets or capital gains, or both, do not provide sufficient value, liquidity or diversity to assure the insurer’s ability to meet its outstanding obligations as they mature;
21. Any other finding determined by the commissioner to be hazardous to the insurer’s policyholders, creditors or general public.
The standards set forth in subsection (c) of this section are in addition to those set forth in other laws or regulations of this state and shall not be construed to limit any other standards.
The commissioner, without advance notice or hearing, may immediately suspend the certificate of authority of any insurer as to which proceedings for receivership, conservatorship, rehabilitation or other delinquency proceedings have been commenced in any state by the public insurance supervisory official of that state.

History. Laws 1877, p. 70, § 31; 1884, ch. 48, § 3; R.S. 1887, § 633; R.S. 1899, § 3185; C.S. 1910, § 4131; C.S. 1920, § 5275; R.S. 1931, § 57-432; C.S. 1945, § 52-1033; W.S. 1957, §§ 26-35, 26.1-65; Laws 1967, ch. 136, § 65; W.S. 1977, § 26-3-120 ; Laws 1983, ch. 190, § 1; 1992, ch. 59, § 2; 2012, ch. 38, §§ 2, 3.

The 2012 amendment, effective July 1, 2012, in the introductory language of (c), added “creditors,” and “general”; added “audit reports and actuarial opinions, reports or summaries” in (c)(i); substituted “other financial analysis solvency tools and reports” for “related reports” in (c)(ii); repealed former (c)(iii), which read: “The ratios of commission expense, general insurance expense, policy benefits and reserve increases as to annual premium and net investment income which could lead to an impairment of capital and surplus”; rewrote (c)(iv); in (c)(vii), added “parent's, obligor's,” and added “and which in the opinion of the commissioner may affect the solvency of the insurer”; and added (c)(xvi) through (xxi).

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

Law reviews. —

For comment, “Establishing the Tort of Bad Faith in Wyoming,” see XX Land & Water L. Rev. 625 (1985).

§ 26-3-117. Suspension and revocation of certificate of authority; order and notice of suspension.

All suspensions or revocations of or refusals to continue an insurer’s certificate of authority shall be by the commissioner’s order given to the insurer.
Upon issuance of an order, the commissioner shall immediately give notice thereof to the insurer’s agents in this state of record in the department and shall suspend or revoke the authority of those agents to represent the insurer.
The commissioner shall publish notice of any suspension, revocation or refusal to continue in a newspaper in general circulation.

History. Laws 1877, p. 70, § 31; 1884, ch. 48, § 3; R.S. 1887, § 633; R.S. 1899, § 3185; C.S. 1910, § 4131; C.S. 1920, § 5275; R.S. 1931, § 57-432; C.S. 1945, § 52-1033; W.S. 1957, §§ 26-35, 26.1-66; Laws 1967, ch. 136, § 66; W.S. 1977, § 26-3-121 ; Laws 1983, ch. 190, § 1.

§ 26-3-118. Suspension, revocation of certification of authority; duration of suspension; reinstatement.

Suspension of an insurer’s certificate of authority shall be for the period the commissioner specifies in the order of suspension, but not to exceed one (1) year. During the suspension period the commissioner may rescind or shorten the suspension by further order.
During the suspension period the insurer shall not solicit or write any new business in this state but shall file its annual statement, pay fees, licenses and taxes as required under this code [title 26] and may service its business already in force in this state as if the certificate of authority had continued in full force.
Upon expiration of the suspension period, if within that period the certificate of authority has not terminated, the insurer’s certificate of authority is automatically reinstated unless the commissioner finds that the causes of the suspension, other than a discontinued violation, have not terminated, or that the insurer is otherwise not in compliance with the requirements of this code, and of which the commissioner shall give the insurer notice not less than thirty (30) days in advance of expiration of the suspension period. If not automatically reinstated, the certificate of authority terminates at the end of the suspension period.
Upon reinstatement of the insurer’s certificate of authority, the authority of its agents in this state to represent the insurer also reinstate. The commissioner shall promptly notify the insurer and its agents in this state, of record in the department, of reinstatement. If pursuant to W.S. 26-3-117(c) the commissioner has published notice of suspension of the insurer’s certificate of authority, he shall also publish notice of reinstatement.

History. Laws 1967, ch. 136, § 67; W.S. 1957, § 26.1-67; W.S. 1977, § 26-3-122 ; Laws 1983, ch. 190, § 1.

§ 26-3-119. General corporation laws not applicable to authorized foreign insurers.

The general corporation laws of this state do not apply to foreign insurers holding certificates of authority to transact insurance in this state.

History. Laws 1877, p. 73, § 40; 1886, ch. 76, § 2; R.S. 1887, § 641; Laws 1890-91, ch. 42, § 1; R.S. 1899, § 3192; C.S. 1910, § 4139; C.S. 1920, § 5284; R.S. 1931, § 57-439; C.S. 1945, § 52-1040; W.S. 1957, §§ 26-6, 26.1-68; Laws 1965, ch. 142, § 1; 1967, ch. 136, § 68; W.S. 1977, § 26-3-123 ; Laws 1983, ch. 190, § 1.

Cross references. —

For statutory provisions relating to corporations generally, see title 17.

§ 26-3-120. Property insurance under 1 additional title authorized.

A property insurer or multiple line insurer authorized to transact insurance in Wyoming may issue property insurance policies under its own name or under one (1) additional “title” registered with the commissioner.
Upon request the commissioner shall furnish to the insurer the form required for registration, and the insurer shall pay the registration fee specified in W.S. 26-4-101 . The registered title shall be shown on the insurer’s certificate of authority and shall remain in effect as long as the insurer’s certificate of authority is in effect, subject to earlier termination at the insurer’s request.
The insurer may separately appoint agents in this state under the registered title in the same manner and on payment of the same fees as apply to appointment and continuation of agents by property insurers in general.
All business transacted by the insurer under the title shall be included in business and transactions of the insurer to be shown by its annual statement and for all purposes under this code [title 26].

History. Laws 1967, ch. 136, § 69; W.S. 1957, § 26.1-69; W.S. 1977, § 26-3-124 ; Laws 1983, ch. 190, § 1.

§ 26-3-121. Service of process; commissioner as agent for service.

Before the commissioner issues a certificate of authority to any foreign, alien or domestic reciprocal insurer, each insurer shall appoint the commissioner, and his successors in office, as its attorney to receive service of legal process issued against the insurer in this state. The appointment shall be made on a form as designated and furnished by the commissioner and shall be accompanied by a copy of a resolution of the insurer’s governing body, if an incorporated insurer, showing that the officers who executed the appointment were authorized to do so on the insurer’s behalf.
The appointment is irrevocable, binds the insurer and any successor in interest as to the insurer’s assets or liabilities and remains in effect as long as there is in force any contract of the insurer in this state or any obligation of the insurer arising out of its transactions in this state.
Service of process against a foreign or alien insurer shall be made only by service thereof upon the commissioner.
At time of application for a certificate of authority the insurer shall file the appointment with the commissioner, together with a designation of the person to whom process against it served upon the commissioner is to be forwarded. The insurer may change that designation by a new filing.

History. Laws 1955, ch. 125, § 1; W.S. 1957, §§ 26-63, 26.1-70; Laws 1967, ch. 136, § 70; W.S. 1977, § 26-3-125 ; Laws 1983, ch. 190, § 1.

Cross references. —

As to service of process generally, see Rule 4, W.R.C.P.

Intent of legislature. —

In passing this section, the legislature was interested in the furnishing of a local forum for residents of this state and for nonresidents when the cause of action arises in this state. Lohman v. Jefferson Standard Life Ins. Co., 525 P.2d 1, 1974 Wyo. LEXIS 224 (Wyo. 1974).

No jurisdiction where cause of action arose outside state and plaintiff is nonresident. —

Section 1-5-107 and this section, absent unjustified judicial enlargement, provide for no jurisdiction in Wyoming courts over nonresidents of the state where there is a nonresident plaintiff and the cause of action arises and all contacts have been outside the state. Lohman v. Jefferson Standard Life Ins. Co., 525 P.2d 1, 1974 Wyo. LEXIS 224 (Wyo. 1974).

There is nothing in subsection (c) standing alone which authorizes service upon an insurer where the cause of action arose elsewhere than Wyoming and the plaintiff is a nonresident of this state. Lohman v. Jefferson Standard Life Ins. Co., 525 P.2d 1, 1974 Wyo. LEXIS 224 (Wyo. 1974).

Cited in

Gookin v. State Farm Fire & Cas. Ins. Co., 826 P.2d 229, 1992 Wyo. LEXIS 17 (Wyo. 1992).

§ 26-3-122. Service of process; service generally.

Service of process against an insurer for whom the commissioner is attorney shall be made by delivering to and leaving with the commissioner, his deputy or a person in apparent charge of his office during the commissioner’s absence, two (2) copies of the process together with a fee as provided in W.S. 26-4-101 , taxable as costs in the action.
In case the process is issued by an inferior court, it may be directed to and served in duplicate by an officer authorized to serve process in the city or county of the commissioner’s office, at least fifteen (15) days before the return day thereof, and that service confers jurisdiction.
Upon service the commissioner shall immediately mail by registered mail one (1) of the copies of the process to the person currently designated by the insurer to receive the process as provided in W.S. 26-3-121(d).
Service of process is sufficient if:
1. Notice of that service and a copy of the process are sent within ten (10) days from the date of service by registered mail by plaintiff or his attorney to the defendant insurer at its last known principal place of business in the United States;
2. The defendant receives or the post office with which the letter is registered issues a receipt, showing the name of the sender of the letter and the name and address of the person to whom the letter is addressed; and
3. The affidavit of the plaintiff or his attorney showing compliance with this section are filed with the clerk of the court in which the action is pending, on or before the date the defendant is required to appear, or within such further time as the court allows.
The commissioner shall keep a record of the day of service upon him of all legal process.
Process served upon the commissioner with a copy forwarded as in this section provided constitutes valid and binding personal service upon the insurer.

History. Laws 1955, ch. 125, § 1; W.S. 1957, §§ 26-63, 26.1-71; Laws 1967, ch. 136, § 71; W.S. 1977, § 26-3-126 ; Laws 1983, ch. 190, § 1; 2000, ch. 19, § 1; ch. 30, § 1; 2018 ch. 108, § 1, effective July 1, 2018.

The 2018 amendment, effective July 1, 2018, in (b), substituted “an” for “a justice of the piece or other” following” issued by.”

Cross references. —

As to service of process on nonresident insurance producers, see § 26-9-230 .

As to service of process against surplus line insurer, see § 26-11-120 .

As to service of process on unauthorized insurers, see §§ 26-12-202 through 26-12-204 .

As to service of process upon unauthorized insurers regarding trade practices and frauds, see § 26-13-117 .

As to service of process on reciprocal insurers, see § 26-27-114 .

As to service of process on fraternal benefit societies, see § 26-29-235 .

As to service of process generally, see Rule 4, W.R.C.P.

Duty to defend claim. —

The duty of an insurer to defend a claim is broader than the duty of the insurer to indemnify. Hutchinson Oil Co. v. Federated Serv. Ins. Co., 851 F. Supp. 1546, 1994 U.S. Dist. LEXIS 6644 (D. Wyo. 1994).

To determine the duty of the insurer to defend the insured, the terms of the policy and the allegations in the complaint must be examined. Hutchinson Oil Co. v. Federated Serv. Ins. Co., 851 F. Supp. 1546, 1994 U.S. Dist. LEXIS 6644 (D. Wyo. 1994).

Service on commissioner without sending separate notice to insurer inadequate. —

Personal service under this section must be accomplished by serving the insurance commissioner and providing a notice of service with a copy of the service to the insurer. One or the other is simply insufficient to satisfy due process. Gookin v. State Farm Fire & Casualty Ins. Co., 826 P.2d 229, 1992 Wyo. LEXIS 17 (Wyo. 1992).

Service invalid where server not appointed by clerk. —

Service of process was without legal effect where the plaintiff used a private investigator not specifically appointed by the clerk of the court to deliver the complaint. Gookin v. State Farm Fire & Casualty Ins. Co., 826 P.2d 229, 1992 Wyo. LEXIS 17 (Wyo. 1992).

Thirty-day time limit for answer. —

Under this section, a defendant shall serve his answer within 30 days after service of the summons and complaint on the insurance commissioner. Gookin v. State Farm Fire & Casualty Ins. Co., 826 P.2d 229, 1992 Wyo. LEXIS 17 (Wyo. 1992).

Stated in

Midway Oil Corp. v. Guess, 714 P.2d 339, 1986 Wyo. LEXIS 473 (Wyo. 1986).

Cited in

In Interest of DG, 825 P.2d 369, 1992 Wyo. LEXIS 11 (Wyo. 1992).

Am. Jur. 2d, ALR and C.J.S. references. —

Validity of substituted service of process upon liability insurer of unavailable tortfeasor, 17 ALR4th 918.

§ 26-3-123. Annual and quarterly statement; required; form; verification; failure to file.

Each authorized insurer, annually, on or before March 1, or within any extended time the commissioner grants, not to exceed thirty (30) days, shall file with the commissioner a full and true statement of its financial condition, transactions and affairs as of December 31 immediately preceding. The statement shall be in the general form and context of, and require information as called for by, the form of annual statement as currently in general and customary use in the United States for the type of insurer and kinds of insurance to be reported upon, with any modification the commissioner requires. The statement shall be verified by the oath of the insurer’s president or vice-president and secretary or actuary as applicable, or if a reciprocal insurer by the oath of the attorney-in-fact, or its like officers if a corporation.
Each authorized insurer shall file with the commissioner on a quarterly basis a statement of its financial condition for the preceding quarter. The statement shall be in the form of a quarterly statement as currently in general and customary use in the United States for the type of insurer and kinds of insurance to be reported upon, with any modification the commissioner requires. Each quarterly statement shall be filed with the commissioner on or before forty-five (45) days from the end of the quarter being reported.
The statement of an alien insurer shall be verified by its United States manager or other authorized officer and shall relate only to the insurer’s transactions and affairs in the United States unless the commissioner requires otherwise. If the commissioner requires a statement as to an alien insurer’s affairs throughout the world, the insurer shall file the statement with the commissioner as soon as reasonably possible.
All annual and quarterly statements filed pursuant to this section shall be completed pursuant to the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual and accompanied by an electronic version containing the same information as the statement. The commissioner may specify the format of the electronic version. The commissioner may accept, for any foreign insurer required to file any statement under this section, an electronic filing with the National Association of Insurance Commissioners meeting the requirements of this section as a filing with the commissioner. The commissioner may refuse to continue or may suspend or revoke the certificate of authority of any insurer failing to file its annual or quarterly statement when due.

History. Laws 1877, p. 64, § 20; R.S. 1887, § 622; R.S. 1899, § 3174; Laws 1907, ch. 98, § 1; C.S. 1910, § 4120; C.S. 1920, § 5264; R.S. 1931, § 57-422; C.S. 1945, § 52-1022; W.S. 1957, §§ 26-36, 26.1-72; Laws 1967, ch. 136, § 72; W.S. 1977, § 26-3-127 ; Laws 1983, ch. 190, § 1; 1994, ch. 76, § 2; 2001, ch. 9, § 1; 2004, ch. 14, § 2.

The 2004 amendment, effective July 1, 2004, in (d), substituted “electronic version” for “computer diskette” and “format” for “size and format,” and inserted the penultimate sentence.

Cross references. —

As to annual report of fraternal benefit societies, see § 26-29-226 .

Law reviews. —

For comment, “Wyoming Tort Reform and the Medical Malpractice Insurance Crisis: A Second Opinion,” see XXVIII Land & Water L. Rev. 593 (1993).

§ 26-3-124. Annual statement; mandatory reporting of claims against health care providers; confidentiality; abstract of statistics.

Any insurer writing coverage for health care malpractice in this state, by March 1 of each year, shall file with the commissioner a report of all claims against a health care provider and a report of all awards or settlements given in cases against health care providers. The report shall contain the following information only for the preceding calendar year:
1. The number and categories of all health care providers the company insures for professional liability;
2. The number of claims for which a reserve has been established made against covered health care providers, including those claims in which no suit was filed;
3. The awards and settlements on health care professional liability claims, including the costs of defense;
4. For each claim:
  1. Specialty coverage of the insured;
  2. Nature and substance of the claim;
  3. Age of the claimant or plaintiff;
  4. After final disposition of the claim, the date and manner of disposition, whether by judgment, settlement, arbitration or otherwise, and an itemization of the amounts paid, if any, if reported separately or can be reasonably segregated or identified for:
    1. Medical and prescription costs;
    2. Economic damages;
    3. Noneconomic damages;
    4. Defense attorneys fees, costs and expenses.
  5. Any additional information required by the commissioner.
Any information provided the commissioner pursuant to this section shall be confidential including the names of health care providers and any records pertaining thereto. The commissioner shall prepare a summary of such information, in the aggregate if necessary to protect the identity of the health care provider or claimant, for inclusion in his annual report to the governor pursuant to W.S. 9-2-1014 .
The commissioner may adopt rules, regulations and reporting forms necessary to carry out the provisions of this section.

History. Laws 1976, ch. 13, § 1; W.S. 1957, § 26.1-72.1; W.S. 1977, § 26-3-128; Laws 1983, ch. 190, § 1; 2005, ch. 196, § 1.

The 2005 amendment, effective July 1, 2005, inserted (a)(iv); rewrote (b) regarding the information provided the commissioner; and added (c).

§ 26-3-125. Annual statement; mandatory reporting of claims against governmental entity.

On or before March 15 of each year, each insurer providing insurance to a governmental entity, as defined in W.S. 1-39-103(a)(i), shall file with the commissioner of insurance a report of the claims made against its insureds which have been closed during the immediately preceding calendar year. The report shall contain, but is not limited to, the following information:
1. The total number of claims filed, broken down by category or type of claim;
2. The total amount paid in settlement or discharge of the claims for each type or category of claims;
3. The total amount of premiums received from insureds under this act [title 26];
4. The total number of insureds under this act whose liability insurance the insurer cancelled or refused to renew and the reasons therefor.

History. Laws 1979, ch. 157, § 1; W.S. 1957, § 26.1-72.1; W.S. 1977, § 26-3-128.1; Laws 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Law reviews. —

For comment, “Wyoming's Governmental Claims Act: Sovereign Immunity with Exceptions — A Statutory Analysis,” see 15 Land & Water L. Rev. 619 (1980).

§ 26-3-126. Annual statement; correction and publication of statements.

As soon as reasonably possible after the insurer files its annual statement with the commissioner, the commissioner shall review the statement and require correction of any errors or omissions.
After any corrections noted are made, the commissioner shall:
1. Cause each statement filed to be condensed and summarized showing briefly but intelligibly the capital, assets, liabilities, income, expenditures and business each insurer does within this state;
2. Include in the summary his certificate, if true, that to the best of his knowledge and belief the insurer is in all respects in compliance with the insurance laws of this state;
3. Cause each summary and certificate to be directly accessible to the public via a link from the main page of the official department website.
Repealed by Laws 2013, ch. 135 § 2.
The commissioner shall cause to be published no less than six (6) times per year and no more than twelve (12) times per year, in newspapers of general circulation within the state that meet the requirements of legal newspapers pursuant to W.S. 18-3-519 , a public service announcement pertaining to insurance which shall include a description of how citizens may access information about licensed insurance companies on the official department website. The cost of the publications shall be shared equally among all insurers required to file an annual statement pursuant to W.S. 26-3-123 and each insurer shall pay its share of the cost of publication upon receipt of a statement from the department. The department shall report to the joint corporations, elections and political subdivisions interim committee on or before July 1, 2015 concerning any public response to the public service announcements required by this subsection.

History. Laws 1877, p. 64, § 20; R.S. 1887, § 622; R.S. 1899, § 3174; Laws 1907, ch. 98, § 1; C.S. 1910, § 4120; C.S. 1920, § 5264; R.S. 1931, § 57-422; C.S. 1945, § 52-1022; W.S. 1957, §§ 26-36, 26.1-73; Laws 1967, ch. 136, § 73; W.S. 1977, § 26-3-129; Laws 1983, ch. 45, §§ 1, 2; ch. 190, § 1; 2013 ch. 135, §§ 1, 2, effective March 13, 2013.

The 2013 amendment, rewrote (b)(iii), which read: “Cause each summary and certificate to be published for six (6) successive days in a daily newspaper of general circulation within the state, or for six (6) successive weeks in a weekly newspaper of general circulation, and the insurer shall pay the cost of publication upon receipt of a statement from the newspaper”; deleted former (c), which read: “Insofar as is possible the commissioner shall distribute the publications equally among the newspapers located in this state”; and added (d).

Laws 2013, ch. 135, § 3, made the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8 of the Wyo. Const. Approved March 13, 2013.

§§ 26-3-127 through 26-3-129. [Repealed.]

Repealed by Laws 2000, ch. 19, § 2.

Editor's notes. —

These sections, which derived from Laws 1967, ch. 136, §§ 74 to 76, related to countersigning agents.

§ 26-3-130. Retaliatory provisions against other states and countries.

The commissioner shall impose upon any insurer, or upon the agent or representative of that insurer of any other state or any foreign country doing business in Wyoming the same taxes, licenses and other fees, in the aggregate, and the same fines, penalties, deposit requirements or other material requirements, obligations, prohibitions or restrictions as are imposed upon Wyoming insurers, or upon their agents or representatives, by the laws of any other state or any political subdivision thereof, or any country or any province or other political subdivision thereof.
This section does not apply to:
1. Application fees, examination fees, license fees, appointment fees and continuation fees for agents, adjusters or consultants;
2. Personal income taxes, ad valorem taxes on real or personal property nor to special purpose obligations or assessments imposed by another state in connection with particular kinds of insurance other than property insurance, except that the commissioner shall consider deductions, from premium taxes or other taxes otherwise payable, allowed because of real estate or personal property taxes paid in determining the propriety and extent of retaliatory action under this section; or
3. Life insurance premium taxes on that portion of a life insurance policy’s annual premium exceeding one hundred thousand dollars ($100,000.00).
For the purposes of this section:
1. The domicile of an alien insurer, other than insurers formed under the laws of Canada, or a province thereof, is that state the insurer designates in writing and files with the commissioner at time of admission to this state and may be that state in which:
  1. The insurer is first authorized to transact insurance;
  2. Is located the insurer’s principal place of business in the United States; or
  3. Is held the insurer’s largest deposit of trusteed assets for the protection of its policyholders in the United States.
2. The domicile of an insurer formed under the laws of Canada or a province thereof is that province in which its head office is located.
If the insurer does not make a designation as provided in subsection (c) of this section, its domicile is that state in which is located its principal place of business in the United States.

History. Laws 1967, ch. 136, § 77; W.S. 1957, § 26.1-77; W.S. 1977, § 26-3-133 ; Laws 1983, ch. 190, § 1; 1987, ch. 170, § 1; 2011, ch. 60, § 2; 2020 ch. 136, § 1, effective January 1, 2021.

The 2011 amendment, effective July 1, 2011, in (b)(i), deleted “service representatives” after “adjusters.”

The 2020 amendment, effective January 1, 2021, added (b)(iii) and made related changes.

§ 26-3-131. Disclosure of loss information; penalties.

Any insurer writing property or casualty insurance in this state as defined in W.S. 26-5-104 and 26-5-106 , shall provide the following information to the named insured within thirty (30) days of receipt of the insured’s written request, but in no event more frequently than once in any twelve (12) month period:
1. Information on claims involving the insured closed within the preceding two (2) years limited to the date and description of occurrence and amount of payments, if any;
2. Information on open claims involving the insured limited to the date and description of occurrence, amount of claim and amount of payment, if any;
3. Information on notices of occurrence involving the insured limited to the date and description of occurrence and amount of claim; and
4. The total amount of reserve on open claims provided no insurer shall be required to provide information on any reserve specifically applicable to or identifying any claim which is or may become subject to proceedings before state or federal courts.
An insurer which elects to cancel or nonrenew any policy of insurance subject to this section, for any reason other than nonpayment of premium, shall cause to be delivered to the insured, at the time such notice of cancellation or nonrenewal is given, a brief statement advising the insured of his right to request the information required to be given under this section.
Any insurer who violates this section is subject to monetary penalties or license revocation or suspension as provided by W.S. 26-1-107 and 26-3-116 .
Repealed by Laws 2004, ch. 57, § 3.

History. Laws 1987, ch. 56, § 1; 2004, ch. 57, § 3.

The 2004 amendment, effective July 1, 2004, repealed (d) which formerly read: “This section does not apply to home owner's property insurance.”

Editor's notes. —

Laws 2004, ch. 57, § 4 provides: “The insurance commissioner may begin the promulgation of rules implementing the provisions of this act upon the effective date of this section.”

Laws 2004, ch. 57, § 6(a), makes § 4 effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 4, 2004.

§ 26-3-132. Commissioner's authority.

For the purposes of making a determination of an insurer’s financial condition under this code, the commissioner may:
1. Disregard any credit or amount receivable resulting from transactions with a reinsurer which is insolvent, impaired or otherwise subject to a delinquency proceeding;
2. Make appropriate adjustments, including disallowance, to asset values attributable to investments in or transactions with an insurer’s parent company, subsidiaries or affiliates consistent with the NAIC Accounting Practices and Procedures Manual, state laws and regulations;
3. Refuse to recognize the stated value of accounts receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor;
4. Increase the insurer’s liability in an amount equal to any contingent liability, pledge or guarantee not otherwise included if there is a substantial risk that the insurer will be called upon to meet the obligation undertaken within the next twelve (12) month period.
If the commissioner determines that the continued operation of the insurer licensed to transact business in this state may be hazardous or injurious to its policyholders, creditors or the general public, then the commissioner may, in addition to any other action permitted by this code, issue an order requiring the insurer to:
1. Reduce the total amount of present and potential liability for policy benefits by purchasing reinsurance;
2. Reduce, suspend or limit the volume of business being accepted or renewed;
3. Reduce general insurance expenses and commission expenses by specified methods;
4. Increase the insurer’s capital and surplus;
5. Suspend or limit the declaration and payment of dividends by an insurer to its stockholders or to its policyholders;
6. File reports in a form acceptable to the commissioner concerning the market value of an insurer’s assets;
7. Limit or withdraw from specified investments or discontinue specified investment practices to the extent the commissioner deems necessary;
8. Document the adequacy of premium rates in relation to the risks insured;
9. File, in addition to regular annual statements, interim financial reports in the form adopted by the National Association of Insurance Commissioners or in a format promulgated by the commissioner;
10. Correct corporate governance practice deficiencies and adopt and utilize governance practices acceptable to the commissioner;
11. Provide a business plan to the commissioner in order to continue to transact business in the state;
12. Notwithstanding W.S. 26-14-102 , 26-19-304 , 26-21-109 , 26-23-326 and 26-34-109 , adjust rates for any nonlife insurance product written by the insurer that the commissioner considers necessary to improve the financial condition of the insurer.
Any insurer subject to an order under subsection (b) of this section may request a hearing to review that order as provided in W.S. 26-2-125 . The notice of hearing shall be served upon the insurer pursuant to W.S. 26-2-126 . The notice of hearing shall state the time and place of hearing and the conduct, condition or grounds upon which the commissioner based the order. Unless mutually agreed between the commissioner and the insurer, the hearing shall occur not less than ten (10) days nor more than thirty (30) days after notice is served and shall be either in Laramie County or in some other place convenient to the parties designated by the commissioner. Notwithstanding any other provision of law, the commissioner shall hold all hearings under this subsection privately, unless the insurer requests a public hearing, in which case the hearing shall be public.
This section shall not be construed to limit the powers granted the commissioner by any other laws of this state.

History. Laws 1992, ch. 59, § 1; 2012, ch. 38, § 2.

The 2012 amendment, effective July 1, 2012, in (a)(ii), added “including disallowance,” and added “consistent with the NAIC Accounting Practices and Procedures Manual, state laws and regulations”; substituted “its policyholders, creditors” for “the policyholders” in the introductory language of (b); added (b)(x) through (xii); and added the present second through fourth sentences in (c).

Meaning of “this code.” —

For the definition of “this code,” referred to in this section, see § 26-1-102(a)(xxxii).

§ 26-3-133. Judicial review.

Any order or decision of the commissioner pursuant to this title shall be subject to review in accordance with the Wyoming Administrative Procedure Act, W.S. 16-3-101 through 16-3-115 , at the instance of any party to the proceedings whose interests are substantially affected.

History. Laws 2012, ch. 38, § 1.

Effective date. —

Laws 2012, ch. 38, § 4, makes the act effective July 1, 2012.

Article 2. Insurance Regulatory Information System

§ 26-3-201. Short title.

This article is known and may be cited as the “Insurance Regulatory Information System Act”.

History. Laws 1987, ch. 108, § 1.

§ 26-3-202. Immunity.

Members of the National Association of Insurance Commissioners, their duly authorized committees, subcommittees, and task forces, their delegates, National Association of Insurance Commissioners employees, and all others charged with the responsibility of collecting, reviewing, analyzing and disseminating the information developed by the National Association of Insurance Commissioners’ Insurance Regulatory Information System from annual statements filed with the National Association of Insurance Commissioners convention blanks shall be acting as agents of the commissioner under the authority of this article and in the absence of actual malice shall not be subject to civil liability for libel, slander or any other cause of action by virtue of their collection, review and analysis or dissemination of the data and information collected from the filings.

History. Laws 1987, ch. 108, § 1.

§ 26-3-203. Confidentiality.

All financial analysis ratios and examination synopsis concerning insurance companies that are submitted to the department by the National Association of Insurance Commissioners’ Insurance Regulatory Information System are confidential and shall not be disclosed by the department except as authorized by and in accordance with the provisions of W.S. 26-2-113(d).

History. Laws 1987, ch. 108, § 1; 1994, ch. 76, § 2; 2001, ch. 9, § 1.

§ 26-3-204. Filing requirements; penalty.

Each domestic, foreign or alien insurer authorized to transact insurance in this state shall annually on or before March 1, file with the National Association of Insurance Commissioners a copy of its annual statement convention blank along with such additional filings prescribed by the commissioner for the preceding year. The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page and the actuarial certification. Any amendments and addenda to the annual statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. Each insurer shall concurrently provide the National Association of Insurance Commissioners with a copy of the electronic filing containing its annual statement as required by W.S. 26-3-123 .
Foreign insurers that are domiciled in a state which has a law substantially similar to subsection (a) of this section shall be deemed in compliance with this section.
Each domestic, foreign or alien insurer authorized to transact insurance in this state shall quarterly on or before forty-five (45) days after the end of the quarter being reported, file with the National Association of Insurance Commissioners a copy of its quarterly statement blank. The information filed with the National Association of Insurance Commissioners shall be in the same format and scope as that required by the commissioner and shall include the signed jurat page. Any amendments and addenda to the quarterly statement filing subsequently filed with the commissioner shall also be filed with the National Association of Insurance Commissioners. Each insurer shall concurrently provide the National Association of Insurance Commissioners with a copy of the electronic filing containing its quarterly statement as required by W.S. 26-3-123 .
The commissioner may impose a civil penalty pursuant to W.S. 26-1-107 and may suspend, revoke or refuse to renew the certificate of authority of any insurer failing to file its quarterly or annual statement when due or within any extension of time which the commissioner, for good cause, may have granted.

History. Laws 1992, ch. 59, § 1; 1994, ch. 76, § 2; 2004, ch. 14, § 2.

The 2004 amendment, effective July 1, 2004, substituted “electronic filing” for “computer diskette” in (a) and (c).

Article 3. Annual Audited Financial Reports Law

§ 26-3-301. Scope of article.

Every insurer as defined by W.S. 26-1-102(a)(xvi) shall be subject to this article. Insurers having direct premiums written in this state of less than one million dollars ($1,000,000.00) in any calendar year and less than one thousand (1,000) policyholders or certificate holders of direct written policies nationwide at the end of a calendar year shall be exempt from this article for that year except an insurer shall not be exempt if:
1. The commissioner makes a specific finding that compliance is necessary for the commissioner to carry out statutory responsibilities; or
2. The insurer has assumed premiums pursuant to contracts or treaties of reinsurance of one million dollars ($1,000,000.00) or more.
Foreign or alien insurers filing the audited financial report in another state, pursuant to that state’s requirement for filing of audited financial reports which has been found by the commissioner to be substantially similar to the requirements of this article, are exempt from W.S. 26-3-303 through 26-3-312 if:
1. A copy of the audited financial report, communication of internal control related matters noted in an audit and the accountant’s letter of qualifications which are filed with the other state are filed with the commissioner and a copy of the audited financial report which is on file with the other state is filed with the National Association of Insurance Commissioners in accordance with the filing dates specified in W.S. 26-3-303 , 26-3-310 and 26-3-311 , respectively. Canadian insurers may submit accountants’ reports as filed with the office of the superintendent of financial institutions, Canada; and
2. A copy of any notification of adverse financial condition report filed with the other state is filed with the commissioner within the time specified in W.S. 26-3-309 .
This article shall not prohibit, preclude or in any way limit the commissioner from ordering or conducting or performing examinations of insurers under this code or regulations and the practices and procedures of the department.
Foreign or alien insurers required to file management’s report of internal control over financial reporting in another state are exempt from filing the report in this state provided the other state has substantially similar reporting requirements and the report is filed with the commissioner of the other state within the time specified.

History. Laws 1994, ch. 76, § 1; 2004, ch. 14, § 2; 2007, ch. 44, § 2; 2009, ch. 94, § 2.

Cross references. —

Property and Casualty Actuarial Opinions, see § 26-6-401 et seq.

The 2004 amendment, effective July 1, 2004, in (b)(i), substituted “National Association of Insurance Commissioners” for “commissioner.”

The 2007 amendment, effective July 1, 2007, in (b)(i), in the first sentence deleted “audited financial report” following “A copy of the,” and inserted “commissioner and a copy of the audited financial report which is in on file with the other state is filed with the.”

The 2009 amendment, effective January 1, 2010, in the introductory language of (a), substituted “and” for “or” preceding “less than one thousand” and “direct” for “directly” preceding “written policies”; in the introductory language of (b), substituted “filing the audited financial report in” for “filing audited financial reports in”, inserted “for filing” preceding “of audited”, and substituted “W.S. 26-3-303 through 26-3-312 ” for “this article”; in (b)(i), substituted “audited financial report, communication of internal control related matters noted in an audit” for “report on significant deficiencies in internal controls,” in the first sentence, and “office of the superintendent of financial institutions, Canada” for “Canadian dominion department of insurance” in the last sentence; and added (d).

§ 26-3-302. Definitions.

As used in this article:
1. “Accountant” or “independent certified public accountant” means an independent certified public accountant or accounting firm in good standing with the American Institute of Certified Public Accountants and in all states in which they are licensed to practice. For Canadian and British companies, the terms mean a Canadian-chartered or British-chartered accountant;
2. “Audited financial report” means and includes those items specified in W.S. 26-3-304 ;
3. “Indemnification” means an agreement of indemnity or a release from liability where the intent or effect is to shift or limit in any manner the potential liability of the person or firm for failure to adhere to applicable auditing or professional standards, whether or not resulting in part from knowing or other misrepresentations made by the insurer or its representatives;
4. “Insurer” means as defined in W.S. 26-1-102(a)(xvi);
5. “Affiliate of” or “affiliated with” a specific person means a person that directly, or indirectly through one (1) or more intermediaries, controls or is controlled by or is under common control with the person specified;
6. “Audit committee” means a committee established by the board of directors of an entity for the purpose of overseeing the accounting and financial reporting processes of an insurer or group of insurers, the internal audit function of an insurer or group of insurers and external audits of financial statements of the insurer or group of insurers. The audit committee of any entity that controls a group of insurers may be deemed to be the audit committee for one (1) or more of these controlled insurers solely for the purposes of this regulation at the election of the controlling person. If an audit committee is not designated by the insurer, the insurer’s entire board of directors shall constitute the audit committee;
7. “Independent board member” means as defined in W.S. 26-3-315(d);
8. “Internal control over financial reporting” means a process effected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the reliability of the financial statements and includes those policies and procedures that:
  1. Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets;
  2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements and that receipts and expenditures are being made only in accordance with authorizations of management and directors; and
  3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material affect on the financial statements.
9. “Group of insurers” means those licensed insurers included in the reporting requirements of W.S. 26-44-101 through 26-44-117 or a set of insurers as identified by management, for the purpose of assessing the effectiveness of internal control over financial reporting;
10. “SEC” means the United States Securities and Exchange Commission;
11. “Section 404” means section 404 of the Sarbanes-Oxley Act of 2002 or subsequently enacted similar federal law and the SEC’s rules and regulations promulgated thereunder;
12. “Section 404 report” means management’s report on internal control over financial reporting as defined by the SEC and the related attestation report of the independent certified public accountant;
13. “SOX compliant entity” means an entity that either is required to be compliant with or voluntarily is compliant with all of the following provisions of the Sarbanes-Oxley Act of 2002 or similar provisions of subsequently enacted similar federal law:
  1. The preapproval requirements of Section 201;
  2. The audit committee independence requirements of Section 301; and
  3. The internal control over financial reporting requirements of Section 404.
14. “Internal audit function” means a person who provides independent oversight designed to improve an organization’s operations and who accomplishes this oversight by using an objective approach to evaluate and improve risk management, control and corporate governance.

History. Laws 1994, ch. 76, § 1; 2004, ch. 14, § 2; 2009, ch. 94, § 2; 2018 ch. 14, § 2, effective January 1, 2019.

The 2004 amendment, effective July 1, 2004, inserted present (a)(iii), and redesignated existing (a)(iii) as present (a)(iv).

The 2009 amendment, effective January 1, 2010, added (a)(v) through (a)(xiii).

The 2018 amendment, effective January 1, 2019, in (a)(vi), substituted “insurers, the internal audit function of an insurer or group of insurers and external audits” for “insurers and audits”; in (a)(vii), substituted “W.S. 26-3-315(d)” for “W.S. 26-3-315(c)”; and added (a)(xiv).

Editor's notes.—

There is no subsection (b) in this section as it appears in the printed acts.

The Sarbanes Oxley Act, referred to in this section, is codified in part at 15 U.S.C. § 7201 et seq.

§ 26-3-303. General requirements related to filing and extensions for filing of annual audited financial reports; audit committee appointment.

All insurers shall have an annual audit by an independent certified public accountant and shall file an audited financial report with the commissioner on or before June 1 for the immediately preceding calendar year. The commissioner may require an insurer to file an audited financial report earlier than June 1 with ninety (90) days advance notice to the insurer.
Extensions of the June 1 filing date may be granted by the commissioner for thirty (30) day periods upon a showing by the insurer and its independent certified public accountant of the reasons for requesting the extension and a determination by the commissioner there is good cause for an extension. The request for extension shall be submitted in writing not less than ten (10) days prior to the due date in sufficient detail to permit the commissioner to make an informed decision with respect to the requested extension.
If an extension is granted in accordance with subsection (b) of this section, a similar extension of thirty (30) days is granted to the filing of the management’s report of internal control over financial reporting.
Every insurer required to file an annual audited financial report pursuant to this section shall designate a group of individuals as constituting its audit committee. The audit committee of an entity that controls an insurer may be deemed to be the insurer’s audit committee for purposes of this article at the election of the controlling person.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, added (c) and (d).

§ 26-3-304. Contents of annual audited financial report.

The annual audited financial report shall report the financial position of the insurer as of the end of the most recent calendar year and the results of its operations, cash flows and changes in capital and surplus for that year in conformity with statutory accounting practices prescribed or permitted by the department of insurance of the state of domicile.
The annual audited financial report shall include the following:
1. Report of an independent certified public accountant;
2. Balance sheet reporting admitted assets, liabilities, capital and surplus;
3. Statement of operations;
4. Statement of cash flows;
5. Statement of changes in capital and surplus;
6. Notes to financial statements. The notes shall be those required by the appropriate National Association of Insurance Commissioners’ annual statement instructions and the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual. The notes shall include:
  1. A reconciliation of differences, if any, between the audited statutory financial statements and the annual statement filed pursuant to W.S. 26-3-123 with a written description of the nature of these differences;
  2. Repealed by Laws 2001, ch. 9, § 2.
7. The financial statements included in the audited financial report shall be prepared in a form and using language and groupings substantially the same as the relevant sections of the annual statement of the insurer filed with the commissioner. The financial statement shall be comparative, presenting the amounts as of December 31 of the current year and the amounts as of the immediately preceding December 31.

History. Laws 1994, ch. 76, § 1; 2001, ch. 9, §§ 1, 2.

§ 26-3-305. Designation of independent certified public accountant.

Each insurer required by this article to file an annual audited financial report shall within sixty (60) days after becoming subject to the requirement, register with the commissioner in writing the name and address of the independent certified public accountant or accounting firm retained to conduct the annual audit. Insurers not retaining an independent certified public accountant on or before April 1, 1994 shall register the name and address of their retained independent certified public accountant not less than six (6) months before the date when the first audited financial report is to be filed.
The insurer shall obtain a letter from the accountant, and file a copy with the commissioner stating that the accountant is aware of the provisions of the insurance code and the rules and regulations of the insurance department of the state of domicile that relate to accounting and financial matters and affirming that he will express his opinion on the financial statements in terms of their conformity to the statutory accounting practices prescribed or otherwise permitted by that department, specifying the exceptions he believes appropriate.
If an accountant who was the accountant for the immediately preceding filed audited financial report is dismissed or resigns, the insurer shall within five (5) business days notify the department of this event. The insurer shall also furnish the commissioner with a separate letter within ten (10) business days of the above notification stating whether in the twenty-four (24) months preceding the dismissal or resignation there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure which, if not resolved to the satisfaction of the former accountant would have caused him to make reference to the subject matter of the disagreement in connection with his opinion. The disagreements required to be reported under this subsection include both those resolved to the former accountant’s satisfaction and those not resolved to the former accountant’s satisfaction. Disagreements required to be reported under this subsection are those which occur at the decision-making level, between personnel of the insurer responsible for presentation of its financial statements and personnel of the accounting firm responsible for rendering its report. The insurer shall also in writing request and the former accountant shall furnish a letter addressed to the department with a copy to the insurer stating whether the accountant agrees with the statements contained in the insurer’s letter and, if not, stating the reasons for which he does not agree.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, inserted “independent” preceding “certified public accountant” in the last sentence in (a).

§ 26-3-306. Qualifications of independent certified public accountant.

The commissioner shall not recognize any person or firm as a qualified independent certified public accountant if that person or firm:
1. Is not in good standing with the American Institute of Certified Public Accountants and in all states in which the accountant is licensed to practice, or, for a Canadian or British company, that is not a chartered accountant; or
2. Has either directly or indirectly entered into an agreement of indemnification with respect to the audit of the insurer.
Except as otherwise provided in this section, the commissioner shall recognize an independent certified public accountant as qualified as long as he conforms to the standards of his profession, as contained in the code of professional ethics of the American Institute of Certified Public Accountants and rules and regulations and code of ethics and rules of professional conduct of the Wyoming board of certified public accountants, or similar code.
After January 1, 2010, the lead or coordinating audit partner having primary responsibility for the audit shall not act in that capacity for more than five (5) consecutive years. The person shall be disqualified from acting in that or a similar capacity for the same company or its insurance subsidiaries or affiliates for a period of five (5) consecutive years. An insurer may make application to the commissioner for relief from the rotation requirement on the basis of unusual circumstances. This application shall be made at least thirty (30) days before the end of the calendar year. The insurer shall file with its annual statement, the approval for relief pursuant to this subsection with the states in which it is licensed or doing business and with the NAIC. If the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic format acceptable to the NAIC. The commissioner may consider the following factors in determining whether the relief should be granted:
1. Number of partners, expertise of the partners or the number of insurance clients in the currently registered firm;
2. Premium volume of the insurer; or
3. Number of jurisdictions in which the insurer transacts business.
The commissioner shall neither recognize as a qualified independent certified public accountant, nor accept any annual audited financial report, prepared in whole or in part by, any natural person who:
1. Has been convicted of fraud, bribery, a violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. Sections 1961 through 1968, or any dishonest conduct or practices under federal or state law;
2. Has been found to have violated the insurance laws of this state with respect to any previous reports submitted under this article; or
3. Has demonstrated a pattern or practice of failing to detect or disclose material information in previous reports filed under the provisions of this article.
The commissioner may hold a hearing to determine whether an independent certified public accountant is qualified and, considering the evidence presented, may rule that the accountant is not qualified for purposes of expressing his opinion on the financial statements in the annual audited financial report made pursuant to this article and require the insurer to replace the accountant with another whose relationship with the insurer is qualified within the meaning of this article.
A qualified independent certified public accountant may enter into an agreement with an insurer to have disputes relating to an audit resolved by mediation or arbitration. However, in the event of a delinquency proceeding commenced against the insurer under chapter 28 of this code, the mediation or arbitration provisions shall operate at the option of the statutory successor.
The commissioner shall neither recognize as a qualified independent certified public accountant, nor accept an annual audited financial report, prepared in whole or in part by an accountant who provides to an insurer, contemporaneously with the audit, the following nonaudit services:
1. Bookkeeping or other services related to the accounting records or financial statements of the insurer;
2. Financial information systems design and implementation;
3. Appraisal or valuation services, fairness opinion or contribution-in-kind reports;
4. Actuarially-oriented advisory services involving the determination of amounts recorded in the financial statements. The accountant may assist an insurer in understanding the methods, assumptions and inputs used in the determination of amounts recorded in the financial statement only if it is reasonable to conclude that the services provided will not be subject to audit procedures during an audit of the insurer’s financial statements. An accountant’s actuary may also issue an actuarial opinion or certification on an insurer’s reserves if the following conditions have been met:
  1. Neither the accountant nor the accountant’s actuary has performed any management functions or made any management decisions;
  2. The insurer has competent personnel or engages a third party actuary to estimate the reserves for which management takes responsibility; and
  3. The accountant’s actuary tests the reasonableness of the reserves after insurer’s management has determined the amount of the reserves.
5. Internal audit outsourcing services;
6. Management functions or human resources;
7. Broker or dealer, investment adviser or investment banking services;
8. Legal services or expert services unrelated to the audit; or
9. Any other services that the commissioner determines by regulation to be impermissible. In determining whether other services are impermissible, the commissioner shall consider the principle that the accountant may not function in the role of management, may not audit his own work and may not serve in an advocacy role for the insurer.
Insurers having direct written and assumed premiums of less than one hundred million dollars ($100,000,000.00) in any calendar year may request an exemption from subsection (g) of this section. The insurer shall file with the commissioner a written statement discussing the reasons why the insurer should be exempt from subsection (g) of this section. If the commissioner finds, upon review of the statement, that compliance with subsection (g) of this section would constitute a financial or organizational hardship on the insurer, an exemption may be granted.
A qualified independent certified public accountant who performs the audit may engage in other nonaudit services, including tax services, that are not described in subsection (g) of this section or that do not conflict with paragraph (g)(ix) of this section only if the activity is approved in advance by the audit committee in accordance with subsection (k) of this section.
All auditing services and nonaudit services provided to an insurer by the qualified independent certified public accountant of the insurer shall be preapproved by the audit committee. The preapproval requirement shall be waived with respect to nonaudit services if the insurer is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity or if:
1. The aggregate amount of all nonaudit services provided to the insurer constitutes not more than five percent (5%) of the total amount of fees paid by the insurer to its qualified independent certified public accountant during the fiscal year in which the nonaudit services are provided;
2. The services were not recognized by the insurer at the time of the engagement to be nonaudit services; and
3. The services are promptly brought to the attention of the audit committee and approved prior to the completion of the audit by the audit committee or by one (1) or more members of the audit committee who are the members of the board of directors to whom authority to grant such approvals has been delegated by the audit committee.
The audit committee may delegate to one (1) or more designated members of the audit committee the authority to grant the preapprovals required under subsection (k) of this section. The decisions of any member to whom this authority is delegated shall be presented to the full audit committee at each of its scheduled meetings.
The commissioner shall not recognize an independent certified public accountant as qualified for a particular insurer if a member of the board, president, chief executive officer, controller, chief financial officer, chief accounting officer or any person serving in an equivalent position for that insurer was employed by the independent certified public accountant and participated in the audit of that insurer during the one (1) year period preceding the date that the most current statutory opinion is due. This subsection shall only apply to partners and senior managers involved in the audit. An insurer may make application to the commissioner for relief from this subsection on the basis of unusual circumstances. The insurer shall file with its annual statement filing the approval for relief under this subsection with the states that it is licensed in or doing business in and with the NAIC. If the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic format acceptable to the NAIC.

History. Laws 1994, ch. 76, § 1; 2004, ch. 14, § 2; 2009, ch. 94, § 2.

The 2004 amendment, effective July 1, 2004, redesignated existing (a) as present (a) and (a)(i), and added (a)(ii); added (f); and made stylistic changes.

The 2009 amendment, effective January 1, 2010, rewrote (c); in (d), substituted “neither” for “not” preceding “recognize”; in (e), substituted “an independent” for “a” preceding “certified public accountant”; and added (g) through (n).

Editor's notes. —

There is no subsection (i) or ( l ) in this section as it appears in the printed act.

§ 26-3-307. Consolidated or combined audits.

An insurer may make written application to the commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of insurance companies which utilizes a pooling or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer cedes all of its direct and assumed business to the pool. In those cases, a columnar consolidating or combining supplemental schedules shall be filed with the report, as follows:
1. Amounts shown on the consolidated or combined audited financial report shall be shown on the supplemental schedules;
2. Amounts for each insurer subject to this section shall be stated separately;
3. Noninsurance operations may be shown on the supplemental schedules on a combined or individual basis;
4. Explanations of consolidating and eliminating entries shall be included;
5. A reconciliation shall be included of any differences between the amounts shown in the individual insurer columns of the supplemental schedules and comparable amounts shown on the annual statements of the insurers.

History. Laws 1994, ch. 76, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-3-308. Scope of audit and report of independent certified public accountant.

Financial statements furnished pursuant to W.S. 26-3-304 shall be examined by the independent certified public accountant. The audit of the insurer’s financial statements shall be conducted in accordance with generally accepted auditing standards. In accordance with Accumulation of Audit Standards (AU) Section 319 of the professional standards of the American Institute of Certified Public Accountants, Consideration of Internal Control in a Financial Statement Audit, the independent certified public accountant shall obtain an understanding of internal control sufficient to plan the audit. To the extent required by AU 319, for those insurers required to file a management’s report of internal control over financial reporting pursuant to W.S. 26-3-318 , the independent certified public accountant shall consider the most recently available report in planning and performing the audit of the statutory financial statements. Consideration shall be given to the procedures illustrated in the financial condition examiner’s handbook promulgated by the National Association of Insurance Commissioners as the independent certified public accountant deems necessary.

History. Laws 1994, ch. 76, § 1; 2007, ch. 44, § 2; 2009, ch. 94, § 2; 2018 ch. 14, § 2, effective January 1, 2019.

The 2007 amendment, effective July 1, 2007, added the last sentence.

The 2009 amendment, effective January 1, 2010, substituted “the” for “an” preceding “independent certified” in the first sentence, “audit” for “examination” preceding “of the insurer's” in the second sentence, and added the third and fourth sentences.

The 2018 amendment, effective January 1, 2019, substituted “pursuant to W.S. 26-3-318 , the independent” for “pursuant to W.S. 26-3-317 , the independent” in the fourth sentence.

§ 26-3-309. Notification of adverse financial condition.

An insurer required to furnish an annual audited financial report shall require the independent certified public accountant to report, in writing, within five (5) business days to the board of directors or its audit committee any determination supported by adequate research conducted by the independent certified public accountant:
1. That the insurer has materially misstated its financial condition reported to the commissioner as of the balance sheet date currently under audit; or
2. That the insurer does not meet the minimum capital and surplus requirement of this code as of that date.
An insurer which has received a report pursuant to subsection (a) of this section shall forward a copy of the report to the commissioner within five (5) business days of receipt of the report and shall provide the independent certified public accountant making the report with evidence of the report being furnished to the commissioner.
Upon receiving the report from the insurer the commissioner shall notify the independent certified public accountant of his receipt of the report. The independent certified public accountant shall furnish the commissioner with a copy of the report within five (5) business days after the insurer is required to forward the report to the commissioner, unless the commissioner has previously acknowledged receipt of the report from the insurer.
Except for any act constituting negligence or malpractice in the preparation of the annual audited financial report specified in W.S. 26-3-304 , no independent certified public accountant shall be liable in any manner to any person for any statement made in connection with subsection (a) of this section if the statement is made in good faith in compliance with subsection (a) of this section.
If the accountant, subsequent to the date of the audited financial report filed pursuant to this article, becomes aware of facts which might have affected his report, the accountant shall take the action prescribed in Volume 1, Section AU 561 of the Professional Standards of the American Institute of Certified Public Accountants, and other action as prescribed by the commissioner by rule.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, in (a)(i) substituted “audit” for “examination” following “under”.

§ 26-3-310. Communication of internal control related matters noted in an audit.

In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weakness, as defined in statement on auditing standard 60 or its replacement, in its internal control over financial reporting noted by the accountant during the audit. Such communication shall be prepared by the accountant within sixty (60) days after the filing of the annual audited financial report and shall contain a description of any unremediated material weakness as of December 31 immediately preceding in the insurer’s internal control over financial reporting noted by the accountant during the course of the audit of the financial statements. If no unremediated material weaknesses were noted, the communication shall so state. The insurer shall provide a description of remedial actions taken or proposed to correct unremediated material weaknesses, if the actions are not described in the accountant’s communication.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, rewrote the section.

§ 26-3-311. Accountant's letter of qualifications.

An accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating:
1. That the accountant is independent with respect to the insurer and conforms to the standards of his profession as contained in the code of professional ethics and pronouncements of the American Institute of Certified Public Accountants and the rules of professional conduct of the Wyoming board of certified public accountants, or similar code;
2. The background and experience in general, and the experience in audits of insurers of the staff assigned to the engagement and whether each is an independent certified public accountant. Nothing within this article shall be construed as prohibiting the accountant from utilizing staff as he deems appropriate where use is consistent with the standards prescribed by generally accepted auditing standards;
3. That the accountant understands the annual audited financial report and his opinion on the report will be filed in compliance with this article, and that the commissioner will be relying on this information in the monitoring and regulation of the financial position of insurers;
4. That the accountant consents to the requirements of W.S. 26-3-312 , and that the accountant consents and agrees to make available for review by the commissioner, his designee or his appointed agent, the workpapers, as defined in W.S. 26-3-312 ;
5. A representation that the accountant is properly licensed by an appropriate state licensing authority and is a member in good standing in the American Institute of Certified Public Accountants;
6. A representation that the accountant is in compliance with the requirements of W.S. 26-3-306 .

History. Laws 1994, ch. 76, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-3-312. Definition, availability and maintenance of independent certified public accountants' workpapers.

Workpapers are the records kept by the independent certified public accountant of the procedures followed, the tests performed, the information obtained, and the conclusions reached pertinent to his audit of the financial statements of an insurer. Workpapers may include audit planning documentation, work programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents and schedules or commentaries prepared or obtained by the independent certified public accountant in the course of his audit of the financial statements of an insurer and which support his opinion of those financial statements.
Every insurer required to file an audited financial report pursuant to this article shall require the accountant to make available for review by department examiners, all workpapers prepared in the conduct of his audit and any communications related to the audit between the accountant and the insurer, at the offices of the insurer, the department or at any other reasonable place designated by the commissioner. The insurer shall require that the accountant retain the audit workpapers and communications until the department has filed a report on examination covering the period of the audit but no longer than seven (7) years from the date of the audit report.
In the conduct of the periodic review by the department examiners under this section, it shall be agreed that photocopies of pertinent audit workpapers may be made and retained by the department. Such reviews by the department examiners shall be considered investigations and all workpapers and communications obtained during the course of the investigations shall be afforded the same confidentiality as other examination workpapers generated by the department.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, substituted “audit” for “examination” in (a) and (b).

§ 26-3-313. Exemptions and effective dates.

Upon written application of any insurer, the commissioner may grant an exemption from compliance with any or all provisions of this article if the commissioner finds, upon review of the application, that compliance with this article would constitute a financial or organizational hardship upon the insurer. Exemptions may be granted at any time for a specified period. Within ten (10) days from a denial of an insurer’s written request for an exemption from this article, the insurer may request in writing a hearing on its application for an exemption. The hearing shall be held in accordance with the rules and regulations of the department pertaining to administrative hearing procedures.
and (c) Repealed by Laws 2009, ch. 94, § 3
The requirements of W.S. 26-3-316 are effective January 1, 2019. If an insurer or group of insurers who are exempt from the requirements of W.S. 26-3-316 no longer qualify for the exemption, the insurer or group of insurers shall have one (1) year after the year the threshold is exceeded in which to comply with the requirements of this article.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, §§ 2, 3; 2018 ch. 14, § 2, effective January 1, 2019.

The 2009 amendment, effective January 1, 2010, inserted “any or all provisions of” preceding “this article” in the first sentence of (a) and repealed (b) and (c) which related to compliance of this article by domestic and foreign insurers.

The 2018 amendment, effective January 1, 2019, added (d).

§ 26-3-314. Canadian and British companies.

In the case of Canadian and British insurers, the annual audited financial report shall be defined as the annual statement of total business on the form filed by such companies with their supervision authority duly audited by an independent chartered accountant. For Canadian and British insurers, the letter required in W.S. 26-3-305(b) shall state that the accountant is aware of the requirements relating to the annual audited financial report filed with the commissioner pursuant to W.S. 26-3-303 and shall affirm that the opinion expressed is in conformity with those requirements.

History. Laws 1994, ch. 76, § 1; 2009, ch. 94, § 2.

The 2009 amendment, effective January 1, 2010, deleted “domiciliary” preceding “supervision” in the first sentence, and substituted “financial report” for “statement” preceding “filed with” in the second sentence.

§ 26-3-315. Requirements for audit committees.

An audit committee shall be directly responsible for the appointment, compensation and oversight of the work of any accountant, including resolution of disagreements between management and the accountant regarding financial reporting, employed for the purpose of preparing or issuing the audited financial report or related work pursuant to this article and each accountant shall report directly to the audit committee.
The audit committee of an insurer or group of insurers shall be responsible for overseeing the insurer’s internal audit function and granting the persons performing the function suitable authority and resources to fulfill their responsibilities if required by W.S. 26-3-316 .
Each member of the audit committee shall be a member of the board of directors of the insurer or a member of the board of directors of an entity elected pursuant to W.S. 26-3-302(a)(vi) and subsection (f) of this section.
In order to be considered independent for purposes of this section, a member of the audit committee shall not, other than in his capacity as a member of the audit committee, the board of directors or any other board committee, accept any consulting, advisory or other compensatory fee from the entity or be an affiliated person of the entity or any subsidiary thereof. If any other provision of law requires board participation by otherwise nonindependent members, that law shall prevail and those members may participate in the audit committee and be designated as independent for audit committee purposes unless they are an officer or employee of the insurer or one (1) of its affiliates.
If a member of the audit committee ceases to be independent for reasons outside the member’s reasonable control, that person, with notice by the responsible entity to the state, may remain an audit committee member of the responsible entity until the earlier of the next annual meeting of the responsible entity or one (1) year from the occurrence of the event that caused the member to be no longer independent.
To exercise the election of the controlling person to designate the audit committee for purposes of this article, the ultimate controlling person shall provide written notice to the commissioners of the affected insurers. Notification shall be made timely prior to the issuance of the statutory audit report and include a description of the basis for the election. The election may be changed through notice to the commissioner by the insurer which shall include a description of the basis for the change. The election shall remain in effect for perpetuity, until rescinded.
The audit committee shall require the accountant that performs for an insurer any audit required by this article to timely report to the audit committee in accordance with the requirements of Statement on Auditing Standards 61, Communication with Audit Committees, or its replacement, including:
1. All significant accounting policies and material permitted practices;
2. All material alternative treatments of financial information within statutory accounting principles that have been discussed with management officials of the insurer, ramifications of the use of the alternative disclosures and treatments and the treatment preferred by the accountant; and
3. Other material written communications between the accountant and the management of the insurer, such as any management letter or schedule of unadjusted differences.
If an insurer is a member of an insurance holding company system, the reports required under subsection (g) of this section may be provided to the audit committee on an aggregate basis for insurers in the holding company system, provided that any substantial differences among insurers in the system are identified to the audit committee.
The proportion of independent audit committee members shall meet or exceed the following criteria, except that the commissioner has authority afforded by state law to require the entity’s board to enact improvements to the independence of the audit committee membership if the insurer is in any RBC action level event, meets one (1) or more of the standards of an insurer deemed to be in hazardous financial condition or otherwise exhibits qualities of a troubled insurer:
1. For insurers with prior calendar year direct written and assumed premiums of five hundred million dollars ($500,000,000.00) or less the audit committee shall have a majority of members that are independent and the insurers are encouraged to structure their audit committees with at least seventy-five percent (75%) of the audit committee members being independent;
2. For insurers with prior calendar year direct written and assumed premiums of more than five hundred million dollars ($500,000,000.00) at least seventy-five percent (75%) of the members of the audit committee shall be independent;
3. For purposes of this subsection, prior calendar year direct written and assumed premiums shall be the combined total of direct premiums and assumed premiums from nonaffiliates for the reporting entities.
An insurer with direct written and assumed premiums, excluding premiums reinsured with the federal crop insurance corporation and federal flood program, less than five hundred million dollars ($500,000,000.00) may make application to the commissioner for a waiver from the requirements of this section based on hardship. The insurer shall file, with its annual statement filing, the approval for relief from this section with the states that it is licensed in or doing business in and the National Association of Insurance Commissioners. If the nondomestic state accepts electronic filing with the NAIC, the insurer shall file the approval in an electronic format acceptable to the NAIC.
This section shall not apply to foreign or alien insurers licensed in this state or an insurer that is a SOX compliant entity or a direct or indirect wholly-owned subsidiary of a SOX compliant entity, as defined in W.S. 26-3-302(a)(xiii).
An insurer or group of insurers that is not required to have independent audit committee members or only a majority of independent audit committee members because the total written and assumed premium is below the threshold and subsequently becomes subject to any of the independence requirements due to changes in premiums shall have one (1) year following the year the threshold is exceeded to comply with the independence requirements. An insurer that becomes subject to any of the independence requirements as a result of a business combination shall have one (1) calendar year following the date of acquisition or combination to comply with the independence requirements.

History. Laws 2009, ch. 94, § 1; 2018 ch. 14, § 2, effective January 1, 2019.

The 2018 amendment, effective January 1, 2019, added (b); redesignated former (b) through (m) as (c) through (n); in (c), substituted “and subsection (f) of this section” for “and 26-3-315(e)”; and made related stylistic changes.

Editor's notes. —

There is no subsection (i) or ( l ) in this section as it appears in the printed acts.

Effective dates. —

Laws 2009, ch. 94, § 4, makes the act effective January 1, 2010.

§ 26-3-316. Internal audit function requirements.

An insurer is exempt from the requirements of this section if:
1. The insurer has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the federal crop insurance corporation and federal flood program, less than five hundred million dollars ($500,000,000.00); and
2. If the insurer is a member of a group of insurers, the group has annual direct written and unaffiliated assumed premiums, including international direct and assumed premiums, but excluding premiums reinsured with the federal crop insurance corporation and federal flood program, less than one billion dollars ($1,000,000,000.00).
Each insurer or group of insurers shall establish an internal audit function providing independent oversight regarding the insurer’s governance, risk management and internal controls. This oversight shall be provided by performing general and specific audits, reviews and tests and by employing other techniques deemed necessary to protect assets, evaluate control effectiveness and efficiency and evaluate compliance with policies and regulations.
The internal audit function shall be organizationally independent. Specifically, the internal audit function shall not defer ultimate judgment on audit matters to others and shall appoint an individual to head the internal audit function who shall have direct and unrestricted access to the board of directors. Organizational independence does not preclude dual reporting relationships.
The head of the internal audit function shall report to the audit committee regularly, but not less than annually, on the periodic audit plan, factors that may adversely impact the internal audit function’s independence or effectiveness, material findings from completed audits and the appropriateness of corrective actions implemented by management as a result of audit findings.
If an insurer is a member of an insurance holding company system or included in a group of insurers, the insurer may satisfy the internal audit function requirements set forth in this section at the ultimate controlling parent level, an intermediate holding company level or the individual legal entity level.

History. 2018 ch. 14, § 1, effective January 1, 2019.

Effective date. —

Laws 2018, ch. 14, § 4, makes the act effective July 1, 2019.

§ 26-3-317. Conduct of insurer in connection with preparation of required reports and documents.

No director or officer of an insurer shall, directly or indirectly:
1. Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review or communication required under this article; or
2. Omit to state or cause another person to omit to state any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review or communication required under this article.
No officer or director of an insurer or any other person acting under the direction thereof shall directly or indirectly take any action to coerce, manipulate, mislead or fraudulently influence any accountant engaged in the performance of an audit pursuant to this article if that person knew or should have known that the action, if successful, could result in rendering the insurer’s financial statements materially misleading. For purposes of this subsection, actions that, if successful, could result in rendering the insurer’s financial statements materially misleading include, but are not limited to, actions taken at any time with respect to the professional engagement period to coerce, manipulate, mislead or fraudulently influence an accountant to:
1. Issue or reissue a report on an insurer’s financial statements that is not warranted in the circumstances due to material violations of statutory accounting principles prescribed by the commissioner, generally accepted auditing standards or other professional or regulatory standards;
2. Not perform any audit, review or other procedures required by generally accepted auditing standards or other professional standards;
3. Not withdraw an issued report; or
4. Not communicate matters to an insurer’s audit committee.
Violation of this section shall be punishable as provided in W.S. 26-1-107 .

History. Laws 2009, ch. 94, § 1; renumbered from § 26-3-316 by 2018 ch. 14, § 3, effective January 1, 2019.

§ 26-3-318. Management's report of internal control over financial reporting.

Every insurer required to file an audited financial report pursuant to this article that has annual direct written and assumed premiums, excluding premiums reinsured with the federal crop insurance corporation and federal flood program, of five hundred million dollars ($500,000,000.00) or more shall prepare a report of the insurer’s or group of insurers’ internal control over financial reporting. The report shall be filed with the commissioner along with the communication of internal control related matters noted in an audit described in W.S. 26-3-310 . Management’s report of internal control over financial reporting shall be as of the immediately preceding December 31.
Notwithstanding the premium threshold in subsection (a) of this section, the commissioner may require an insurer to file management’s report of internal control over financial reporting if the insurer is in any RBC level event or meets any one (1) or more of the standards of an insurer deemed to be in hazardous financial condition as defined in W.S. 26-3-116 .
An insurer or group of insurers that is directly subject to section 404, part of a holding company system whose parent is directly subject to section 404, not directly subject to section 404 but is a SOX compliant entity or a member of a holding company system whose parent is not directly subject to section 404 but is a SOX compliant entity, may file its or its parent’s section 404 report and an addendum in satisfaction of this section provided that those internal controls of the insurer or group of insurers having material impact on the preparation of the insurer’s or group of insurers’ audited statutory financial statements were included in the scope of the section 404 report. The addendum shall be a positive statement by management that there are no material processes with respect to the preparation of the insurer’s or group of insurers’ audited financial statements excluded from the section 404 report. If there are internal controls of the insurer or group of insurers that have a material impact on the preparation of the insurer’s or group of insurers’ audited statutory financial statements and those internal controls were not included in the scope of the section 404 report, the insurer or group of insurers may either file a report under this section or the section 404 report and a report under this section for those internal controls that have a material impact on the preparation of the insurer’s or group of insurers’ audited statutory financial statements not covered by the section 404 report.
A management’s report of internal control over financial reporting shall include:
1. A statement that management is responsible for establishing and maintaining adequate internal control over financial reporting;
2. A statement that management has established internal control over financial reporting and an assertion to the best of management’s knowledge and belief, after diligent inquiry, as to whether its internal control over financial reporting is effective to provide reasonable assurance regarding the reliability of financial statements in accordance with statutory accounting principles;
3. A statement that briefly describes the approach or processes by which management evaluated the effectiveness of its internal control over financial reporting;
4. A statement that briefly describes the scope of work that is included and whether any internal controls were excluded;
5. Disclosure of any unremediated material weaknesses in the internal control over financial reporting identified by management as of the immediately preceding December 31. Management shall not conclude that the internal control over financial reporting is effective to provide reasonable assurance regarding the reliability of financial statements in accordance with statutory accounting principles if there is one (1) or more unremediated material weakness in its internal controls over financial reporting;
6. A statement regarding the inherent limitations of internal control systems; and
7. Signatures of the chief executive officer and the chief financial officer or the equivalent position.
Management shall document and make available upon financial condition examination the basis upon which its assertions required in subsection (d) of this section are made. Management may base its assertions, in part, upon its review, monitoring and testing of internal controls undertaken in the normal course of its activities. Management shall have discretion as to the nature of the internal control framework used and the nature and extent of documentation in order to make its assertions in a cost effective manner and may include assembly of or reference to existing documentation. Management’s report on internal control over financial reporting and any documentation provided in support thereof during the course of a financial conditions examination shall be kept confidential by the department.
The requirements of this section are effective beginning with the reporting period ending December 31, 2010 and each year thereafter. An insurer or group of insurers that is not required to file a report because the total written premium is below the threshold and subsequently becomes subject to the reporting requirements shall have two (2) years following the year the threshold is exceeded to file a report. An insurer that becomes subject to any of the reporting requirements as a result of a business combination shall have two (2) calendar years following the date of acquisition or combination to comply with the reporting requirements.

History. Laws 2009, ch. 94, § 1; renumbered from § 26-3-317 by 2018 ch. 14, § 3, effective January 1, 2019.

Article 4. Disclosure of Material Transactions

§ 26-3-401. Report of material transactions.

Every insurer domiciled in this state, and effective July 1, 1996, every authorized foreign insurer not subject to a substantially similar provision in its domicile, shall file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements unless the acquisitions and dispositions of assets or material nonrenewals, cancellations or revisions of ceded reinsurance agreements have been submitted to the commissioner for review, approval or information purposes pursuant to other provisions of the insurance code, department regulations or other requirements.
The report required in subsection (a) of this section is due within fifteen (15) days after the end of the calendar month in which any of the transactions occur.
One (1) complete copy of the report, including any exhibits or other attachments filed as part of the report, shall be filed with:
1. The department; and
2. The National Association of Insurance Commissioners.
All reports obtained by or disclosed to the commissioner pursuant to this article shall be given confidential treatment, and shall not be made public by the commissioner, the National Association of Insurance Commissioners, or any other person, except:
1. To persons as authorized by and in accordance with the provisions of W.S. 26-2-113(d);
2. Upon the prior written consent of the insurer to which it pertains; or
3. If the commissioner, after giving the insurer who would be affected, notice and an opportunity to be heard, determines the interest of policyholders, shareholders or the public will be served by publication of the report, the commissioner may publish all or any part of the report he deems appropriate.

History. Laws 1994, ch. 76, § 1; 2001, ch. 9, § 1.

§ 26-3-402. Acquisitions and dispositions of assets.

Subject to subsection (c) of this section, asset acquisitions subject to this article include every purchase, lease, exchange, merger, consolidation, succession or other acquisition other than the construction or development of real property by or for the reporting insurer or the acquisition of materials for such purpose.
Subject to subsection (c) of this section, asset dispositions subject to this article include every sale, lease, exchange, merger, consolidation, mortgage, assignment for the benefit of creditors or otherwise, abandonment, destruction or other disposition.
No acquisition or disposition of assets shall be reported pursuant to W.S. 26-3-401 if the acquisition or disposition is not material. A material acquisition, disposition or the aggregate of any series of related acquisitions or dispositions during any thirty (30) day period, is one which is:
1. Nonrecurring;
2. Not in the ordinary course of business; and
3. Involves more than five percent (5%) of the reporting insurer’s total admitted assets as reported in its most recent statutory statement filed with the insurance department of the insurer’s state of domicile.
The following information is required to be disclosed in any report of a material acquisition or disposition of assets:
1. Date of the transaction;
2. Manner of acquisition or disposition;
3. Description of the assets involved;
4. Nature and amount of the consideration given or received;
5. Purpose of, or reason for, the transaction;
6. Manner by which the amount of consideration was determined;
7. Gain or loss recognized or realized as a result of the transaction; and
8. Name of the person from whom the assets were acquired or to whom they were disposed.
Insurers are required to report material acquisitions and dispositions on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if:
1. The insurer has less than one million dollars ($1,000,000.00) total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement; and
2. The net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer’s capital and surplus.

History. Laws 1994, ch. 76, § 1.

§ 26-3-403. Nonrenewals, cancellations or revisions of ceded reinsurance agreements.

No nonrenewal, cancellation or revision of ceded reinsurance agreements need be reported pursuant to W.S. 26-3-401 if the nonrenewal, cancellation or revision is not material. For purposes of this article, a material nonrenewal, cancellation or revision is one that affects for property and casualty business, including accident and health business when written as such, more than fifty percent (50%) of an insurer’s ceded written premium, or for life, annuity and accident and health business, more than fifty percent (50%) of the total reserve credit taken for business ceded, on an annualized basis as indicated in the insurer’s most recently filed statutory statement. No filing is required if the insurer’s ceded written premium or the total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent (10%) of direct plus assumed written premium or ten percent (10%) of the statutory reserve requirement prior to any cession, respectively.
Subject to subsection (a) of this section, a report shall be filed without regard to which party has initiated the nonrenewal, cancellation or revision of ceded reinsurance whenever one (1) or more of the following conditions exist:
1. The entire cession has been canceled, nonrenewed or revised and ceded indemnity and loss adjustment expense reserves after any nonrenewal, cancellation or revision represent less than fifty percent (50%) of the comparable reserves that would have been ceded had the nonrenewal, cancellation or revision not occurred;
2. An authorized or accredited reinsurer has been replaced on an existing cession by an unauthorized reinsurer; or
3. Collateral requirements previously established for unauthorized reinsurers have been reduced, including, but not limited to, the requirement to collateralize incurred but not reported claim reserves being waived with respect to one (1) or more unauthorized reinsurers newly participating in an existing cession.
Subject to subsection (a) of this section, for purposes of paragraphs (b)(ii) and (iii) of this section, a report shall be filed if the result of the revision affects more than ten percent (10%) of the cession.
The following information is required to be disclosed in any report of a material nonrenewal, cancellation or revision of ceded reinsurance agreements:
1. Effective date of the nonrenewal, cancellation or revision;
2. The description of the transaction with an identification of the initiator;
3. Purpose of, or reason for, the transaction; and
4. If applicable, the identity of the replacement reinsurers.
Insurers are required to report all material nonrenewals, cancellations or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of a consolidated group of insurers which utilizes a pooling arrangement or one hundred percent (100%) reinsurance agreement that affects the solvency and integrity of the insurer’s reserves and the insurer ceded substantially all of its direct and assumed business to the pool. An insurer is deemed to have ceded substantially all of its direct and assumed business to a pool if the insurer has less than one million dollars ($1,000,000.00) total direct plus assumed written premiums during a calendar year which are not subject to a pooling arrangement and the net income of the business not subject to the pooling arrangement represents less than five percent (5%) of the insurer’s capital and surplus.

History. Laws 1994, ch. 76, § 1.

Article 5. Electronic Delivery of Documents

Effective date. —

Laws 2014, ch. 115, § 1, makes the act effective July 1, 2014.

§ 26-3-501. Applicability.

This article shall apply to property and casualty insurance, life insurance and disability insurance, including:
1. Accident only insurance;
2. Accidental death or dismemberment insurance;
3. Credit insurance;
4. Dental or vision care insurance;
5. Medicare supplemental insurance as defined by section 1882(g)(i) of the federal Social Security Act;
6. Long-term care insurance, including nursing home fixed indemnity insurance;
7. Disability income or a combination of accident only and disability income insurance;
8. Insurance issued as a supplement to liability insurance;
9. Specified disease insurance;
10. Workers’ compensation insurance;
11. Medical payment insurance coverage provided under a motor vehicle insurance policy;
12. Hospital confinement indemnity insurance;
13. Limited benefit insurance that is offered and marketed as supplemental health insurance and not as a substitute for hospital or medical insurance or major medical expense insurance.

History. 2014 ch. 115, § 1, effective July 1, 2014; 2020 ch. 45, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, designated former (a) as the introductory language of (a) and deleted “only” following “apply”; and added (a)(i) through (a)(xiii).

§ 26-3-502. Electronic notices and documents.

Subject to subsection (c) of this section, any notice to a party or any other document required under applicable law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored and presented by electronic means so long as it meets the requirements of the Uniform Electronic Transactions Act, W.S. 40-21-101 through 40-21-119 .
Delivery of a notice or document in accordance with this section shall be considered equivalent to any delivery method required under applicable law including chapter 35 of this code, including delivery by first class mail, first class mail postage prepaid, certified mail, certificate of mail or certificate of mailing.
A notice or document may be delivered by electronic means by an insurer to a party under this section if all of the following are met:
1. The party has affirmatively consented to that method of delivery and has not withdrawn the consent;
2. The party, before giving consent, is provided with a clear and conspicuous statement informing the party of:
  1. Any right or option of the party to have the notice or document provided or made available in paper or another nonelectronic form;
  2. The right of the party to withdraw consent to have a notice or document delivered by electronic means and any fees, conditions or consequences imposed in the event consent is withdrawn;
  3. Whether the party’s consent applies:
    1. Only to the particular transaction as to which the notice or document must be given; or
    2. To identified categories of notices or documents that may be delivered by electronic means during the course of the parties’ relationship.
  4. The means, after consent is given, by which a party may obtain a paper copy of a notice or document delivered by electronic means and the fee, if any, for the paper copy; and
  5. The procedure a party must follow to withdraw consent to have a notice or document delivered by electronic means and to update information needed to contact the party electronically.
3. The party:
  1. Before giving consent, is provided with a statement of the hardware and software requirements for access to and retention of a notice or document delivered by electronic means; and
  2. Consents electronically, or confirms consent electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means as to which the party has given consent.
4. After consent of the party is given, the insurer, in the event a change in the hardware or software requirements needed to access or retain a notice or document delivered by electronic means creates a material risk that the party will not be able to access or retain a subsequent notice or document to which the consent applies:
  1. Complies with paragraph (ii) of this subsection; and
  2. Provides the party with a statement of:
    1. The revised hardware and software requirements for access to and retention of a notice or document delivered by electronic means;
    2. The right of the party to withdraw consent without the imposition of any fee, condition, or consequence that was not disclosed under subparagraph (ii)(B) of this subsection.
This section does not affect requirements related to content or timing of any notice or document required under applicable law.
If a provision of this title or applicable law requiring a notice or document to be provided to a party expressly requires verification or acknowledgment of receipt of the notice or document, the notice or document may be delivered by electronic means only if the method used provides for verification or acknowledgment of receipt.
The legal effectiveness, validity or enforceability of any contract or policy of insurance executed by a party may not be denied solely because of the failure to obtain electronic consent or confirmation of consent of the party in accordance with subparagraph (c)(iii)(B) of this section.
With respect to withdrawal of consent, the following apply:
1. A withdrawal of consent by a party does not affect the legal effectiveness, validity or enforceability of a notice or document delivered by electronic means to the party before the withdrawal of consent is effective;
2. A withdrawal of consent by a party is effective within a reasonable period of time after receipt of the withdrawal by the insurer;
3. Failure by an insurer to comply with paragraph (c)(iv) of this section may be treated, at the election of the party, as a withdrawal of consent for purposes of this section.
This section does not apply to a notice or document delivered by an insurer in an electronic form before July 1, 2014 to a party who, before that date, has consented to receive notice or document in an electronic form otherwise allowed by law.
If the consent of a party to receive certain notices or documents in an electronic form is on file with an insurer before July 1, 2014, and pursuant to this section, an insurer intends to deliver additional notices or documents to such party in an electronic form, then prior to delivering such additional notices or documents electronically, the insurer shall notify the party of:
1. The notices or documents that may be delivered by electronic means under this section that were not previously delivered electronically; and
2. The party’s right to withdraw consent to have notices or documents delivered by electronic means.
Except as otherwise provided by law, if an oral communication or a recording of an oral communication from a party can be reliably stored and reproduced by an insurer, the oral communication or recording may qualify as a notice or document delivered by electronic means for purposes of this section. If a provision of this title or applicable law requires a signature or notice or document to be notarized, acknowledged, verified or made under oath, the requirement is satisfied if the electronic signature of the person authorized to perform those acts, together with all other information required to be included by the provision, is attached to or logically associated with the signature, notice or document.
This section may not be construed to modify, limit or supersede the provisions of the federal Electronic Signatures in Global and National Commerce Act, Public Law 106-229, as amended.
As used in this section:
1. “Delivered by electronic means” includes:
  1. Delivery to an electronic mail address at which a party has consented to receive notices or documents; or
  2. Posting on an electronic network or site accessible via the internet, mobile application, computer, mobile device, tablet or any other electronic device, together with separate notice of the posting which shall be provided by electronic mail to the address at which the party has consented to receive notice or by any other delivery method that has been consented to by the party.
2. “Party” means any recipient of any notice or document required as part of an insurance transaction, including but not limited to an applicant, an insured, a policyholder or an annuity contract holder.

History: 2014 ch. 115, § 1, effective July 1, 2014.

§ 26-3-503. Posting of policies on the internet.

Notwithstanding any other provisions of W.S. 26-3-502 , standard insurance policies and endorsements to which this article is applicable that do not contain personally identifiable information may be mailed, delivered or posted on the insurer’s web site. If the insurer elects to post insurance policies and endorsements on its web site in lieu of mailing or delivering them to the insured, it shall comply with all of the following conditions:
1. The policy and endorsements shall be accessible and remain that way for as long as the policy is in force;
2. After the expiration of the policy, the insurer shall archive its expired policies and endorsements for a period of ten (10) years, and make them available upon request;
3. The policies and endorsements shall be posted in a manner that enables the insured to print and save the policy and endorsements using programs or applications that are widely available on the internet and free to use;
4. The insurer provides the following information in, or simultaneous with each declarations page provided at the time of issuance of the initial policy and any renewals of that policy:
  1. A description of the exact policy and endorsement forms purchased by the insured;
  2. A method by which the insured may obtain, upon request and without charge, a paper copy of their policy;
  3. The internet address where their policy and endorsements are posted.
5. The insurer provides notice, in the format preferred by the insured, of any changes to the forms or endorsements, the insured’s right to obtain, upon request and without charge, a paper copy of such forms or endorsements, and the internet address where such forms or endorsements are posted.

History. 2014 ch. 115, § 1, effective July 1, 2014; 2020 ch. 45, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, in the introductory language of (a), substituted “standard insurance policies and endorsements to which this article is applicable” for “standard property and casualty insurance policies and endorsements.”

Chapter 4 Fees and Taxes

Cross references. —

As to tax on surplus lines, see § 26-11-118 .

As to fees and taxes of farm mutual property insurers generally, see § 26-26-109 .

For license fee of fraternal benefit societies, see § 26-29-227 .

As to exemption of fraternal benefit societies from taxation, see § 26-29-224 .

As to exemption of the Wyoming Insurance Guaranty Association from payment of fees and taxes, see § 26-31-114 .

§ 26-4-101. Fee schedule.

The commissioner shall collect in advance or contemporaneously fees, licenses and miscellaneous charges as specified in this subsection. Collection may include the acceptance of electronic funds transfer. All fees and other charges collected by the commissioner as specified in this subsection shall be nonrefundable:
1. Certificate of authority:
  1. For filing application for insurer’s initial certificate of authority, excluding multiple employer welfare arrangements, including all documents submitted as a part of the application, examination of application and issuance of certificate of authority, if issued . . . . . $750.00
  2. Annual continuation, excluding multiple employer welfare arrangements, including filing of annual statement . . . . . $500.00
  3. Reinstatement (W.S. 26-3-114(c)) . . . . . $ 50.00
  4. Certified copy . . . . . $ 15.00
  5. Registration of additional title (W.S. 26-3-120 ) . . . . . $ 25.00 Annual renewal . . . . . $ 25.00
2. Charter documents (other than those filed with application for certificate of authority). Filing amendments to articles of incorporation, charter, bylaws, power of attorney (as to reciprocal insurers) and other constituent documents of the insurer, each document . . . . . $ 10.00
3. Annual statement. For filing annual statement other than included with (a)(i)(A) or (B) of this subsection . . . . . $ 25.00
4. Service of process, acceptance . . . . . $ 10.00
5. Insurance producers or title agents:
  1. Property, casualty, personal lines or title:
    1. Application for original resident license and issuance of license, if issued . . . . . $100.00
    2. Appointment, each producer or agent, each insurer . . . . . $ 15.00
    3. Annual continuation of appointment, each insurer . . . . . $ 15.00
    4. Temporary license, application fee, and issuance, if issued . . . . . $ 10.00
    5. License under waiver of residency requirement pursuant to a reciprocal agreement, application fee and issuance . . . . . $ 150.00
    6. Continuation of license: Resident . . . . . $100.00 Nonresident . . . . . $150.00
    7. Statement of termination of appointment, each insurer . . . . . $ 15.00
  2. Life, accident and health or sickness or disability, variable life and variable annuities or credit:
    1. Application for original resident license and issuance of license, if issued . . . . . $100.00
    2. Appointment, each producer or agent, each insurer . . . . . $ 15.00
    3. Annual continuation of appointment, each insurer . . . . . $ 15.00
    4. Temporary license, application fee, and issuance, if issued . . . . . $ 10.00
    5. License under waiver of residency requirement pursuant to a reciprocal agreement, application fee and issuance . . . . . $ 150.00
    6. Continuation of license: Resident . . . . . $100.00 Nonresident . . . . . $150.00
    7. Statement of termination of appointment, each insurer . . . . . $ 15.00
6. Repealed by Laws 2004, ch. 7, § 2.
7. Repealed by Laws 2001, ch. 201, § 5.
8. Surplus line brokers: Application for original license, and issuance of license, if issued . . . . . $100.00 Continuation of license: Resident . . . . . $100.00
  Nonresident . . . . . $150.00
9. Adjusters:
  Application for original license, and issuance of license, if issued . . . . . $100.00
  
  Continuation of license:
  
  Resident . . . . . $100.00
  
  Nonresident . . . . . $150.00
10. Repealed by Laws 2004, ch. 7, § 2.
11. Repealed by Laws 2011, ch. 60, § 3.
12. Insurance consultant for hire:
  Application for original license, and issuance, if issued . . . . . $100.00
  
  Continuation of license:
  
  Resident . . . . . $100.00
  
  Nonresident . . . . . $150.00
13. Repealed by Laws 1993, ch. 97, § 2.
14. Limited lines producers:
  Application for original individual license and issuance of license, if issued . . . . . $20.00
  
  Continuation of individual license . . . . . $20.00
  
  Application for original business entity license and issuance of license, if issued . . . . . $100.00
  
  Continuation of business entity license . . . . . $100.00
15. Rating organization license or triennial renewal thereof, including all kinds of insurance as to which licensed . . . . . $150.00
16. Certification of any document and affixing seal of office thereto . . . . . $15.00
17. Copies of documents on file in the department, a reasonable uniform charge per page as fixed by the commissioner;
18. Pharmacy benefit manager (annually) . . . . . $500.00
19. Third party administrator (biennial) . . . . . $200.00
20. Multiple employer welfare arrangement, annual license or renewal . . . . . $500.00.
Repealed by Laws 1993, ch. 97, § 2.

History. Laws 1955, ch. 231, § 4; W.S. 1957, § 26-40; Laws 1963, ch. 172, § 1; 1967, ch. 136, § 78; 1975, ch. 158, § 1; 1977, ch. 48, § 1; ch. 182, § 1; W.S. 1957, § 26.1-84; Laws 1978, ch. 2, § 1; 1979, ch. 9, § 1; ch. 120, § 2; 1983, ch. 190, § 1; 1986, ch. 22, § 1; 1987, ch. 17, § 2; ch. 36, § 1; ch. 170, § 1; 1993, ch. 97, § 2; 2000, ch. 19, § 1; ch. 30, § 1; 2001, ch. 201, §§ 2, 5; 2004, ch. 7, §§ 1, 2; 2011, ch. 60, §§ 2, 3; 2013 ch. 123, § 2, effective July 1, 2013; 2016 ch. 90, § 2, effective July 1, 2016; 2017 ch. 15, § 2, effective July 1, 2017; 2019 ch. 19, § 1, effective July 1, 2019; 2019 ch. 99, § 2, effective July 1, 2019.

The 2004 amendment, effective July 1, 2004, added the final sentence to the introductory language of (a); deleted “and including disability insurance without additional license or fee when written by property, casualty or surety insurer otherwise represented by the agent” from the end of the introductory paragraph (a)(v)(A); repealed former (a)(vi), pertaining to broker fees; repealed former (a)(x), pertaining to an insurance vending machine license; substituted “Continuation of license” for “Annual continuation of license” throughout the section; increased fees and charges in (a)(v), (viii), (ix), (xi), (xii), and (xiv); and, in (xii), deleted “(nonreturnable)” following “Application for original license.”

The 2011 amendment, effective July 1, 2011, rewrote (a)(v)(B); added “Resident,” “Nonresident,” and “$150.00” in (a)(viii) and (a)(ix); repealed former (a)(xi), which read: “Service representative: Application for original license, and issuance, if issued ..................... $ 100.00 Continuation of license ..................... $ 100.00”; rewrote (a)(xii), and made related changes.

The 2013 amendment, effective July 1, 2013, substituted the colon for “pursuant to W.S. 26-9-209(c):”; added “individual” following “Application for original”; and added the last sentence in (a)(xiv).

The 2016 amendment , effective July 1, 2016, added (a)(xviii).

The 2017 amendment, effective July 1, 2017, added (a)(xix).

The 2019 amendments. — The first 2019 amendment, by ch. 19, § 1, effective July 1, 2019, in (a)(v), added "Insurance producers or title a"; in (a)(v)(A) substituted "personal lines or" for "surety and", added a colon after "title" and deleted "insurance agents:"; in (a)(v)(A)(I) deleted "agents"; in (a)(v)(A)(II) added comma after "Appointment", deleted "of" and added "each producer or"; in (a)(v)(B) added colon after "credit" and deleted "insurance:"; in (a)(v)(B)(I) deleted "agents"; in (a)(v)(B)(II) added a comma after "Appointment", deleted "of" and added "each producer or"; in (a)(xiv) substituted "lines producers" for "license" and added "individual" after "of" and "Continuation of business entity license $100".

The second 2019 amendment, by ch. 99, § 2, effective July 1, 2019, in (a)(i)(A) and (B), added "excluding multiple employer welfare arrangements," and added (a)(xx).

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

Applicability. —

Laws 2004, ch. 7, § 3, directs the insurance commissioner to implement the biannual licensing provided in the act beginning with licenses issued or subject to renewal in the 2005 calendar year. Specifically, license fees provided under W.S. 26-4-101 , 26-46-102 and 26-47-113 prior to the amendment of those provisions by the act will apply to licenses issued or renewed through December 31, 2004. On and after January 1, 2005, license fees under W.S. 26-4-101 , 26-46-102 and 26-47-113 as amended by the act, will be applicable. If this implementation shortens the period for which the license fee or continuation fee has been paid, no refund of the unearned fee shall be made. If this implementation lengthens the period for which the license fee or continuation fee has been paid, no additional fee shall be charged.

Laws 2019, ch. 99 § 3, provides: "This act applies to health insurance policies issued on or after July 1, 2019."

Stated in

State Sur. Co. v. Lamb Constr. Co., 625 P.2d 184, 1981 Wyo. LEXIS 291 (Wyo. 1981).

Cited in

Wyoming Ins. Guar. Ass'n v. Allstate Indem. Co., 844 P.2d 464, 1992 Wyo. LEXIS 199 (Wyo. 1992).

§ 26-4-102. Record of receipts; payment to treasurer; credit to fund.

The commissioner shall keep a complete and accurate record of all monies he receives and disburses. All tax returns and records are open to examination at any time by the director of the state department of audit or his representative.
The commissioner shall promptly deposit all monies he receives from any charges to the general fund, with receipt and acknowledgement submitted to the state treasurer, except that:
1. Repealed by Laws 2017, ch. 9, § 3.
2. Up to one hundred percent (100%) of the gross premium tax levied upon fire insurance premiums shall be deposited by the state treasurer in the volunteer firefighter, EMT and search and rescue pension account pursuant to W.S. 35-9-628 . For purposes of this paragraph, the gross premium tax levied upon fire insurance premiums is equal to thirty percent (30%) of the total gross premium tax levied upon all property, casualty and multiple line insurers;
3. Any premium assessments collected under W.S. 26-4-103(n), which shall be transferred to the air ambulance coverage account not more than thirty (30) days after receipt.

History. Laws 1919, ch. 75, § 7; C.S. 1920, § 233; R.S. 1931, § 57-107; C.S. 1945, § 52-107; Laws 1957, ch. 236, § 5; W.S. 1957, §§ 26-5, 26.1-79; Laws 1963, ch. 108, § 4; 1967, ch. 136, § 79; 1973, ch. 245, § 3; 1983, ch. 190, § 1; 1987, ch. 36, § 1; 1989, ch. 80, § 1; 1991, ch. 73, § 1; ch. 240, § 1; 1993, ch. 189, § 1; 1997, ch. 69, § 1; 2004, ch. 130, § 1; 2015 ch. 12, § 1, effective July 1, 2015; 2015 ch. 32, § 2, effective July 1, 2015; 2017 ch. 9, § 3, effective July 1, 2017; 2019 ch. 83, § 1, effective July 1, 2019; 2019 ch. 189, § 3, effective April 1, 2020; 2020 ch. 22, § 2, effective March 9, 2020; 2020 ch. 107, § 1, effective July 1, 2020.

Cross references. —

For provisions relating to state treasurer and state funds, see §§ 9-1-409 through 9-1-413 .

The 2004 amendment, in (b)(i), deleted “and (xiii)” following “26-4-101(a)(v)(A)(I) and (B)(I).”

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

The 2015 amendments. —

The first 2015 amendment, by ch. 12, § 1, effective July 1, 2015, in (b), substituted “deposit” for “pay,” deleted “state treasurer for credit to the” preceding “general fund,” and inserted “with receipt and acknowledgement submitted to the state treasurer.”

The second 2015 amendment, by ch. 32, § 2, effective July 1, 2015, in (b)(ii), substituted “An amount not to exceed seventy percent (70%)” for “Fifty percent (50%),” “firefighter and EMT” for “firemen’s,” and “W.S. 35-9-628 ” for “W.S. 35-9-604 ” in the first sentence, and substituted “thirty percent (30%)” for “twenty-six percent (26%)” in the last sentence.

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

The 2017 amendment, effective July 1, 2017, repealed former (b)(i), which read: “Fees received pursuant to W.S. 26-4-101(a)(v)(A)(I) and (B)(I) shall be paid and credited as provided in W.S. 26-10-107 ; and.”

The 2019 amendments. —

The first 2019 amendment, by ch. 83, § 1, effective July 1, 2019, in (b)(ii), substituted “eighty percent (80%)” for “seventy percent (70%),” and substituted “volunteer firefighter, EMT and search and rescue pension account” for “volunteer firefighter and EMT pension account.”

The second amendment, by ch. 189, § 3, effective April 1, 2020, added (b)(iii).

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

The 2020 amendments. —

The first 2020 amendment, by ch. 22, § 2, in (b)(iii), added “Any” at the beginning.

Laws 2020, ch. 22, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 9, 2020.

The second 2020 amendment, by ch. 107, § 1, effective July 1, 2020, in (b)(ii) substituted “Up to one hundred percent (100%)” for “An amount not to exceed eighty percent (80%).”

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

Applicability

Laws 2019, ch. 189 § 6, provides: "This act applies to air ambulance transport services provided on or after April 1, 2020."

Conflicting legislation. —

§ 26-4-103. Premium taxes; generally; preemption by state.

Each authorized and formerly authorized insurer shall file with the commissioner on or before March 1 each year or within any extended period the commissioner grants not to exceed thirty (30) days, a report in a form the commissioner prescribes showing, except for wet marine and transportation insurance as defined in W.S. 26-5-107 and except as provided under subsection (k) of this section, total direct premium income including policy, membership and other fees, and all other considerations for insurance and annuity contracts, however designated, it received during the immediately preceding calendar year because of policies and contracts covering property, subjects or risks located, resident or to be performed in this state. The report shall also identify separately the premiums charged on life insurance policies with annualized premiums exceeding one hundred thousand dollars ($100,000.00) for the immediately preceding calendar year. The total direct premium income reported shall include proper proportionate allocation of premiums or consideration as to those persons, property, subjects or risks in this state insured or covered under policies or contracts covering persons, property, subjects or risks located or resident in more than one (1) state, and shall be computed after deducting:
1. The amount of return premiums on cancelled policies, but not including the return of cash surrender values on life policies or annuity contracts; and
2. The amount returned to policyholders as current dividends.
3. Repealed by Laws 1986, ch. 22, §§ 1, 4.
At the same time the report is filed, each insurer shall pay for the privilege of transacting business in this state, a tax upon net premiums and net considerations to be computed at the following rates:
1. As to each insurer, the tax rate, except as to annuity considerations, shall be as follows:
  1. through (C) Repealed by Laws 2020 ch. 136, § 2.
    (D) Except as provided in subparagraph (E) of this paragraph, for premium income received, seventy-five hundredths percent (.75%);
    
    (E) For premium income received, seventy-five hundredths percent (.75%) on the first one hundred thousand dollars ($100,000.00) of a life insurance policy’s annual premium and seventy-five thousandths of one percent (.075%) on that portion of a life insurance policy’s annual premium exceeding one hundred thousand dollars ($100,000.00).
2. Repealed by Laws 1986, ch. 22, §§ 2, 4.
3. As to annuity considerations, the tax rate is one percent (1%).
As to wet marine and transportation insurance, on or before March 1 of each year each authorized and formerly authorized insurer shall file its report with the commissioner, on forms he prescribes and furnishes or accepts, of its gross underwriting profit on that insurance written in Wyoming during the immediately preceding calendar year, and, at the same time, shall pay a tax of three-fourths percent (3/4%) of the gross underwriting profit.
The gross underwriting profit shall be ascertained by deducting from the net premiums (i.e. gross premiums less all return premiums and premiums for reinsurance) on the wet marine and transportation insurance contracts the net losses paid (i.e. gross losses paid less salvage and recoveries on reinsurance ceded) during the calendar year under the contracts. In the case of insurers issuing participating contracts, for tax computation under this subsection, gross underwriting profit does not include the amounts refunded or paid as participating dividends by those insurers to the holders of those contracts.
Repealed by Laws 1986, ch. 22, § 3.
Payment of the tax required by this section is instead of all taxes imposed by the state upon premiums or upon income and of franchise, privilege or other taxes measured by the insurer’s income.
The state preempts the field of regulating, or of imposing any taxes, licenses and fees upon insurers and their general agents, agents and other representatives and on the intangible property of insurers or their representatives. All political subdivisions or agencies in the state are prohibited from regulating insurers or their general agents, agents and other representatives and from imposing or levying upon them any tax, license or fee. This provision does not prohibit the imposition by political subdivisions of taxes upon real and tangible personal property of insurers, general agents, agents and representatives.
The provisions of subsections (f) and (g) of this section shall not be modified or repealed by any law of general application enacted after December 31, 1967 unless expressly referred to or expressly repealed therein.
No tax is due or payable because of premiums or considerations received from policies or contracts issued in connection with a pension annuity or profit-sharing plan exempt or qualified under sections 401, 403, 404, 408, 457 or 501 of the United States Internal Revenue Code of 1954, as amended or renumbered.
Notwithstanding subsection (a) of this section, any authorized insurer selling insurance shall beginning January 1, 1991 and in accordance with this subsection, pay premium taxes quarterly based upon an estimate of taxes payable on total direct premium income including policy, membership and other fees:
1. Each estimated quarterly tax payment shall be payable on or before the last day of the month immediately following the end of the calendar quarter for which payment is due, except payment for the calendar quarter ending December 31 of each year shall be payable on or before March 1 of the immediately succeeding calendar year and shall include any adjustments for the calendar year for which the final quarterly payment is made. Except for the calendar quarter ending December 31, the quarterly payment shall not be less than twenty-five percent (25%) of the total premium tax paid during the preceding calendar year;
2. Any adjustment to estimated quarterly payments for any calendar year and any claim by an insurer for a refund shall be made at the time of filing the annual report required under subsection (a) of this section. Following notice to the insurer by the commissioner, adjustment under this paragraph may be added to or deducted from subsequent quarterly payments under this subsection;
3. The commissioner shall suspend or revoke the certificate of authority for any insurer failing to pay premium taxes pursuant to this subsection.
The amount of tax credits for which an insurer qualifies under W.S. 9-12-1301 through 9-12-1312 shall be allowed as a credit against premium tax owed by the insurer under subsections (a) through (k) of this section.
At the same time a report under subsection (a) of this section is filed, an insurer making private health benefit plans available in this state, and any plan which has entered into agreement under W.S. 42-4-123(j), shall pay to the commissioner a three-quarter percent (.75%) assessment upon net premiums and net considerations. The commissioner shall, not more than thirty (30) days after receipt, transfer premium assessments paid under this subsection to the air ambulance coverage account. Application of this subsection shall be contingent on operation of the air ambulance transport services program under W.S. 42-4-123(b).

History. Laws 1967, ch. 136, § 80; W.S. 1957, § 26.1-80; Laws 1975, ch. 38, § 1; 1983, ch. 190, § 1; 1986, ch. 22, §§ 1 to 4; 1989, ch. 80, § 1; 1991, ch. 47, § 1; ch. 53, § 1; ch. 149, § 1; 2004, ch. 130, § 1; 2010, ch. 113, § 2; 2019 ch. 189, § 3, effective April 1, 2020; 2020 ch. 22, § 2, effective March 9, 2020; 2020 ch. 136, §§ 1, 2, effective January 1, 2021.

The 2004 amendment, in (h), deleted “(e)” following “provisions of subsections.”

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

The 2010 amendment, added (m).

Laws 2010, ch. 113, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 11, 2010.

The 2019 amendment, effective April 1, 2020, in (m), substituted “under subsections (a) through (k) of this section” for “under this section”; and added (n).

The 2020 amendments. —

The first 2020 amendment, by ch. 22, § 2, in (n), added the last sentence.

Laws 2020, ch. 22, § 3, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 9, 2020.

The second 2020 amendment, by ch. 136, §§ 1, 2, effective January 1, 2021, in the introductory language of (a) added the second sentence; repealed (b)(i)(A) through (b)(i)(C), which read “(A) For premium income received in 1991 the tax rate shall be two and one-tenth percent (2.1%); (B) For premium income received in 1992 the tax rate shall be one and six-tenths percent (1.6%); (C) For premium income received in 1993 the tax rate shall be one and two-tenths percent (1.2%)”; in (b)(i)(D) substituted “Except as provided in subparagraph (E) of this paragraph, for premium income received” for “For premium income received in 1994 and thereafter the tax rate shall be”; and added (b)(i)(E) and made a related change.

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

Editor's notes. —

There is no subsection (i) or (l) in this section as it appears in the printed acts.

Internal Revenue Code. —

The provisions of the United States Internal Revenue Code of 1954 referred to in subsection (j) are codified as 26 U.S.C. §§ 401, 403, 404, 408, 457 and 501, respectively.

Applicability.—

Laws 2019, ch. 189 § 6, provides: "This act applies to air ambulance transport services provided on or after April 1, 2020."

Conflicting legislation. —

Tax on premiums received by out-of-state insurer constitutional. —

Where an out-of-state insurer receives the benefits of the state's protection of its insureds, a tax imposed on the gross Wyoming premium receipts of the insurer is constitutionally fair. Armed Forces Coop. Insuring Ass'n v. Department of Ins., 622 P.2d 1318, 1980 Wyo. LEXIS 332 (Wyo. 1980), overruled in part, Torres v. State ex rel. Wyo. Workers' Safety & Comp. Div., 2004 WY 92, 95 P.3d 794, 2004 Wyo. LEXIS 119 (Wyo. 2004).

Liability for past premium taxes of another company. —

Where a foreign order declares that defendant is liable for the past, present and future obligations of another company, defendant's liability for past premium taxes owed by that company is a question of fact that is properly before the district court. Wyoming Ins. Dep't v. Sierra Life Ins. Co., 599 P.2d 1360, 1979 Wyo. LEXIS 453 (Wyo. 1979).

Improper to grant injunctive relief requested by commissioner until parties' obligations ascertained. —

And commissioner cannot ask for judicial advice where official administrative action not taken. —

The insurance commissioner cannot ask the court to advise him relative to which of two actions he should take in connection with the required allocation of premiums on policies covering multi-state risks where he has not taken official administrative action on the issue one way or the other. Langdon v. Aetna Life Ins. Co., 640 P.2d 1092, 1982 Wyo. LEXIS 299 (Wyo. 1982).

Am. Jur. 2d, ALR and C.J.S. references. —

Construction, application, and operation of state “retaliatory” statutes imposing special taxes or fees on foreign insurers doing business within the state, 30 ALR4th 873.

§ 26-4-104. [Repealed.]

Repealed by Laws 1991, ch. 149, §§ 2(a) and (b).

Editor's notes. —

This section, which derived from Laws 1967, ch. 136, § 81, related to a credit an insurer could reverse against tax liability by investing its assets in Wyoming investments.

§ 26-4-105. Premium taxes; commissioner to collect tax; failure to pay.

The taxes imposed under W.S. 26-4-103 shall be collected by the commissioner.
If the insurer does not pay the tax on or before March 31 of the year in which due, the tax is delinquent, and the commissioner may enforce payment thereof by the seizure, distraint and sale of any of the insurer’s property within Wyoming or by any other lawful means. If the tax is delinquent, the commissioner shall suspend or revoke the insurer’s certificate of authority.

History. Laws 1967, ch. 136, § 82; W.S. 1957, § 26.1-82; Laws 1983, ch. 190, § 1; 2004, ch. 130, § 1.

The 2004 amendment, in (a), deleted “and 26-4-104 ” following “W.S. 26-4-103 .”

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

Conflicting legislation. —

Improper to grant injunctive relief requested by commissioneruntil parties' obligations ascertained. —

Chapter 5 Kinds of Insurance, Limits of Risk, Reinsurance

Am. Jur. 2d, ALR and C.J.S. references. —

Right of health or accident insurer to intervene in workers' compensation proceeding to recover benefits previously paid to claimant or beneficiary, 38 ALR4th 355.

Liability insurance: excess carrier's right of action against primary carrier for improper or inadequate defense of claim, 49 ALR4th 304.

“Excess” or “umbrella” insurance policy as providing coverage for accidents with uninsured or underinsured motorists, 2 ALR5th 922.

Requirement that multicoverage umbrella insurance policy offer uninsured- or underinsured-motorist coverage equal to liability limits under umbrella provisions, 52 ALR5th 451.

§ 26-5-101. Definitions not mutually exclusive.

It is intended that certain insurance coverages may come within the definitions of two (2) or more kinds of insurance in this chapter, and the inclusion of a coverage within one (1) definition does not preclude it from being included within another definition in which it can be reasonably included.

History. Laws 1967, ch. 136, § 83; W.S. 1957, § 26.1-83; Laws 1983, ch. 190, § 1.

§ 26-5-102. “Life insurance” defined.

Life insurance is insurance on human lives and the transaction of life insurance includes also the granting of:
1. Endowment benefits;
2. Additional benefits because of death or dismemberment by accident or accidental means;
3. Additional benefits because of the insured’s disability; and
4. Optional modes of settlement of proceeds of life insurance.

History. Laws 1921, ch. 142, § 23; R.S. 1931, § 57-223; C.S. 1945, § 52-501; W.S. 1957, §§ 26-118, 26.1-84; Laws 1967, ch. 136, § 84; 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Am. Jur. 2d, ALR and C.J.S. references. —

Accident or life insurance: death by autoerotic asphyxiation as accidental, 62 ALR4th 823.

Who is a “parent” entitled to proceeds of serviceman's group life insurance, where there are no named beneficiaries, and no surviving widow or children, under 38 USCS § 770(a), 73 ALR Fed 135.

§ 26-5-103. “Disability insurance” defined.

Disability insurance is insurance of any kind on human beings against:
1. Bodily injury, disablement or death by accident or accidental means, or the expense thereof; or
2. Disablement or expense resulting from sickness.
For any statute with an effective date on or after July 2, 2011, and unless expressly and specifically provided by statute, the term “disability insurance” does not include any of the following excepted benefits:
1. Accident only insurance;
2. Accidental death or dismemberment insurance;
3. Credit insurance;
4. Dental or vision care insurance;
5. Medicare supplemental insurance as defined by section 1882(g)(i) of the federal Social Security Act;
6. Long-term care insurance, including nursing home fixed indemnity insurance, except if the commissioner determines that the insurance provides benefits so comprehensive that it is the equivalent of a health benefit plan and should not be exempt under this section;
7. Disability income or a combination of accident only and disability income insurance;
8. Insurance issued as a supplement to liability insurance;
9. Specified disease insurance;
10. Workers’ compensation insurance;
11. Medical payment insurance coverage provided under a motor vehicle insurance policy;
12. Hospital confinement indemnity insurance;
13. Limited benefit insurance that is offered and marketed as supplemental health insurance and not as a substitute for hospital or medical insurance or major medical expense insurance.

History. Laws 1967, ch. 136, § 85; W.S. 1957, § 26.1-85; Laws 1983, ch. 190, § 1; 2011, ch. 165, § 1; 2019 ch. 189, § 3, effective April 1, 2020; 2021 ch. 125, § 2, effective July 1, 2021.

The 2011 amendment, effective July 1, 2011, added (b).

The 2019 amendment, effective April 1, 2020, in (a)(ii), added "including subscription or membership plans relating to air ambulance transport services" at the end.

The 2021 amendment, effective July 1, 2021, deleted ", including subscription or membership plans relating to air ambulance transport services" at the end of (a)(ii).

Editor's notes. —

Laws 2011, ch. 165 § 2 provides:

Applicability.—

Laws 2019, ch. 189 § 6, provides: "This act applies to air ambulance transport services provided on or after April 1, 2020."

Am. Jur. 2d, ALR and C.J.S. references. —

Death during or after surgery as accidental within coverage of health or accident insurance policy, 91 ALR3d 1042.

Construction and application of provision in health or hospitalization policy excluding or postponing coverage of prior illness, 94 ALR3d 990.

Accident insurance: death or disability incident to partaking of food or drink as within provision as to external, violent and accidental means, 29 ALR4th 1230.

Accident insurance: what is “loss” of body member, 51 ALR4th 156.

Accident or life insurance: death by autoerotic asphyxiation as accidental, 62 ALR4th 823.

§ 26-5-104. “Property insurance” defined.

Property insurance is insurance on any property against loss or damage from any cause, and against loss consequential upon that loss or damage, other than noncontractual legal liability for that loss or damage. Property insurance does not include title insurance, as defined in W.S. 26-5-109 .

History. Laws 1967, ch. 136, § 86; W.S. 1957, § 26.1-86; Laws 1983, ch. 190, § 1.

Am. Jur. 2d, ALR and C.J.S. references. —

Liability policy providing coverage for damages because of injury to or destruction of property as covering injury to investments, 92 ALR3d 525.

Livestock or animal insurance: risks and losses, 47 ALR4th 772.

Boiler and machinery insurance: risks and losses covered by policy or provision expressly covering boilers and machinery, 49 ALR4th 336.

Theft and vandalism insurance: coinsured's misconduct as barring innocent coinsured's right to recover on policy, 64 ALR4th 714.

Property damage insurance: what constitutes “contamination” within policy clause excluding coverage, 72 ALR4th 633.

What is “flood” within exclusionary clause of property damage policy, 78 ALR4th 817.

Construction and effect of provisional or monthly reporting inventory insurance, 81 ALR4th 9.

Liability policy coverage for insured's injury to third party's investments, anticipated profits, goodwill, or the like, unaccompanied by physical property damage, 18 ALR5th 187.

§ 26-5-105. “Surety insurance” defined.

Surety insurance includes:
1. Fidelity insurance, which is insurance guaranteeing the fidelity of persons holding positions of public or private trust;
2. Insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings and contracts of suretyship;
3. Insurance indemnifying insureds against:
  1. Loss, resulting from any cause, on bills of exchange, bonds, securities, deeds, warehouse receipts or other valuable papers, documents, money, precious metals and articles made therefrom, jewelry, watches, gems, precious and semiprecious stones, including any loss thereof while being transported in armored motor vehicles, or by messenger, but not including any other risks of transportation or navigation; or
  2. Loss or damage to an insured’s premises or to his furnishings, fixtures, equipment, safes and vaults therein, caused by actual or attempted burglary, robbery, theft, vandalism or malicious mischief.

History. Laws 1967, ch. 136, § 87; W.S. 1957, § 26.1-87; Laws 1977, ch. 23, § 1; 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Quoted in

State Sur. Co. v. Lamb Constr. Co., 625 P.2d 184, 1981 Wyo. LEXIS 291 (Wyo. 1981).

Am. Jur. 2d, ALR and C.J.S. references. —

Construction and effect of clause in fidelity bond or insurance policy excluding from coverage losses proved by “inventory computation” or “profit and loss computation,” 45 ALR4th 1049.

Construction and effect of “jeweler's block” policies or provisions contained therein, 22 ALR5th 579.

§ 26-5-106. “Casualty insurance” defined.

Casualty insurance includes:
1. Insurance against:
  1. Loss of or damage to any land vehicle or aircraft or any draft or riding animal or to property while contained therein or thereon or being loaded or unloaded therein or therefrom, from any cause;
  2. Any loss, liability or expense resulting from or incidental to ownership, maintenance or use of any vehicle, aircraft or animal; and
  3. Accidental injury to individuals, regardless of legal liability of the insured, including the named insured, while in, entering, alighting from, adjusting, repairing, cranking or caused by being struck by a vehicle, aircraft or draft or riding animal, if the insurance is issued as an incidental part of insurance on the vehicle, aircraft or draft or riding animal.
2. Insurance against legal liability for the death, injury, or disability of any human being or for damage to property, and provision of medical, hospital, surgical and disability benefits to injured persons and funeral and death benefits to dependents, beneficiaries or personal representatives of persons killed, regardless of legal liability of the insured, if issued as an incidental coverage with or supplemental to liability insurance;
3. Insurance of the obligations accepted by, imposed upon or assumed by employers under law for death, disablement or injury of employees;
4. Insurance against loss or damage:
  1. By actual or attempted burglary, theft, robbery, forgery, fraud, vandalism, malicious mischief, confiscation, wrongful conversion, disposal or concealment, including supplemental coverage for medical, hospital, surgical and funeral expense incurred by the named insured or any other person as a result of bodily injury during the commission of a burglary, robbery or theft by another;
  2. To monies, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers and documents from any cause.
5. Insurance upon personal effects against loss or damage from any cause;
6. Insurance against loss or damage to glass, including its lettering, ornamentation and fittings;
7. Insurance against any liability and loss or damage to property or interest resulting from accidents to or explosions of boilers, pipes, pressure containers, machinery or apparatus, and the inspection of and issuance of certificates of inspection upon boilers, machinery and apparatus of any kind, whether or not insured;
8. Insurance against loss or damage to:
  1. Any property or interest caused by the breakage or leakage of sprinklers, hoses, pumps and other fire extinguishing equipment or apparatus, water pipes or containers, or by water entering through leaks or openings in buildings; and
  2. The sprinklers, hoses, pumps and other fire extinguishing equipment or apparatus.
9. Insurance indemnifying the insured against loss or damage resulting from failure of debtors to pay their obligations to the insured, including insurance to guarantee the repayment of real estate mortgages;
10. Insurance against:
  1. Legal liability of the insured; and
  2. Loss, damage, or expense incidental to a claim of that liability, including medical, hospital, surgical and funeral benefits to injured persons, regardless of legal liability of the insured, because of death, injury or disablement of any person or damage to the economic interests of any person as the result of negligence in rendering expert, fiduciary or professional service.
11. Insurance against loss of or damage to any property of the insured, resulting from the ownership, maintenance or use of elevators, except loss or damage by fire and including the inspection of and issuance of certificates of inspection upon elevators;
12. Insurance against congenital defects in human beings;
13. Insurance against loss or damage to livestock and services of a veterinary for those animals;
14. Insurance indemnifying the producer of any motion picture, television, radio, theatrical, sport, spectacle, entertainment or similar production, event or exhibition against loss from interruption, postponement or cancellation thereof because of death, accidental injury or sickness of performers, participants, directors or other principals;
15. Insurance against any other kind of loss, damage or liability properly a subject of insurance and not within any other kind of insurance as defined in this chapter, if the commissioner does not disapprove the insurance as being contrary to law or public policy.
Provision of medical, hospital, surgical and funeral benefits, and of coverage against accidental death or injury, as incidental to and part of other insurance as stated under paragraphs (a)(i), (ii), (iv), (vii), (x) and (xi) of this section is for all purposes the same kind of insurance to which it is so incidental and is not subject to provisions of this code [title 26] applicable to life or disability insurances.

History. Laws 1967, ch. 136, § 88; W.S. 1957, § 26.1-88; Laws 1977, ch. 23, § 1; 1983, ch. 190, § 1; 2013 ch. 191, § 2, effective July 1, 2013.

Cross references. —

For provisions as to consumer credit insurance, see §§ 40-14-401 through 40-14-432 .

The 2013 amendment, effective July 1, 2013, deleted “larceny” after “theft” near the beginning of (a)(iv)(A).

Am. Jur. 2d, ALR and C.J.S. references. —

Products liability insurance coverage as extending to particular losses, 91 ALR3d 921.

Who is “named insured” within meaning of automobile insurance coverage, 91 ALR3d 1280.

Farm owners' liability insurance risks and coverage, 93 ALR3d 472.

When is automobile “used under contract in behalf of, or loaned to,” insured, within meaning of “hired automobile” provision of automobile insurance policy, 5 ALR4th 636.

Liability to refund local taxes as within coverage of liability insurance, 21 ALR4th 895.

Insured's duties respecting care of injured or ill animal covered by animal or livestock policy, 22 ALR4th 1053.

Construction and application of pollution exclusion clause in liability insurance policy, 39 ALR4th 1047.

Construction and effect of clause in fidelity bond or insurance policy excluding from coverage losses proved by “inventory computation” or “profit and loss computation,” 45 ALR4th 1049.

Liability insurance: when is vehicle in “dead storage,” 48 ALR4th 591.

Aviation insurance: causal link between breach of policy provisions and accident as requisite to avoid insurer's liability, 48 ALR4th 778.

Boiler and machinery insurance: risks and losses covered by policy or provision expressly covering boilers and machinery, 49 ALR4th 336.

Accident insurance: what is “loss” of body member, 51 ALR4th 156.

Who is “employed or engaged in the automobile business” within exclusionary clause of liability policy, 55 ALR4th 261.

What constitutes use of vehicle “in the automobile business” within exclusionary clause of liability policy, 56 ALR4th 300.

What constitutes “entering” or “alighting from” vehicle within meaning of insurance policy, or statute mandating insurance coverage, 59 ALR4th 149.

Liability insurance: what is “claim” under deductibility-per-claim clause, 60 ALR4th 983.

What constitutes single accident or occurrence within liability policy limiting insurer's liability to a specified amount per accident or occurrence, 64 ALR4th 668.

Automobile insurance: umbrella or catastrophe policy automobile liability coverage as affected by primary policy “other insurance” clause, 67 ALR4th 14.

What constitutes theft within automobile theft insurance policy — modern cases, 67 ALR4th 82.

Construction and effect of “rain insurance” policies insuring against rainfall on the date of concert, exhibition, game or the like, 70 ALR4th 1010.

Validity and operation of “step-down” provision of automobile liability policy reducing coverage for permissive users, 29 ALR5th 469.

What constitutes “suit” triggering insurer's duty to defend environmental claims — state cases, 48 ALR5th 355.

What constitutes “vandalism” or “malicious mischief” within meaning of insurance policy specifically extending coverage to losses from such causes, 56 ALR5th 407.

§ 26-5-107. “Marine and transportation insurance” and “wet marine and transportation insurance” defined.

“Marine and transportation insurance” includes:
1. Insurance against any kinds of loss or damage to:
  1. Vessels, craft, aircraft vehicles of any kind, all cargoes, effects, disbursements, profits, monies, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests and all other kinds of property and interests therein, incident thereto or in connection with any risks of any type of navigation, transit or transportation, or while being assembled or prepared in any manner for or awaiting shipment or during any delays, storage, transshipment or reshipment incident thereto, including marine builder’s risks and all personal property, floater risks; and
  2. Person or to property in connection with or appertaining to a marine, inland marine, transit or transportation insurance, including liability for loss of or damage to either because of or in connection with the construction, repair, operation, maintenance or use of the subject matter of the insurance, excluding life insurance, surety bonds and insurance against loss by reason of bodily injury to the person because of the ownership, maintenance or use of automobiles; and
  3. Any jewels or precious metals used in any manner and whether in transportation or otherwise; and
  4. Bridges, tunnels and other instrumentalities of transportation, excluding buildings, their furnishings and fixed contents and supplies held in storage, unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion or both, are the only hazards to be covered, piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot or civil commotion or both, and other aids to navigation and transportation including dry docks and marine railways, against all risks; and
2. “Marine protection and indemnity insurance”, meaning insurance against the insured or against legal liability of the insured for, loss, damage or expense arising out of or incident to the ownership, operation, chartering, maintenance, use, repair or construction of any vessel or craft in use in ocean or inland waterways, including liability of the insured for personal injury, illness or death or for the loss of or damage to the property of another person.
For the purposes of this code [title 26], “wet marine and transportation” insurance is that part of “marine and transportation” insurance which includes only:
1. Insurance upon vessels, crafts, hulls and of interests therein or with relation thereto;
2. Insurance of marine builders’ risks, marine war risks and contracts of marine protection and indemnity insurance;
3. Insurance of freights and disbursements pertaining to a subject of insurance coming within this definition; and
4. Insurance of personal property and interests therein in course of exportation from or importation into any country, or in course of transportation coastwise or on inland waters, including any form of transportation from point of origin to final destination in respect to or in connection with any risks of navigation, transit or transportation, and while being prepared for or awaiting shipment, and during any delays, storage, transshipment or reshipment incident thereto.

History. Laws 1967, ch. 136, § 89; W.S. 1957, § 26.1-89; Laws 1983, ch. 190, § 1.

Am. Jur. 2d, ALR and C.J.S. references. —

Airport operations liability insurance, 92 ALR3d 1267.

Loss allegedly resulting from smuggling activities as within marine insurance policy covering barratry, 77 ALR Fed 743.

§ 26-5-108. What insurance multiple line insurer may transact.

A multiple line insurer may transact any kind of insurance defined in this chapter, other than title insurance and, except as provided in W.S. 26-3-107(a)(i), life insurance or the granting of annuities.

History. Laws 1967, ch. 136, § 90; W.S. 1957, § 26.1-90; Laws 1983, ch. 190, § 1.

§ 26-5-109. “Title insurance” defined.

Title insurance is insurance of owners of property or others having an interest therein, or liens or encumbrances thereon, against loss by encumbrance, defective titles, invalidity or adverse claim to title.

History. Laws 1967, ch. 136, § 91; W.S. 1957, § 26.1-91; Laws 1983, ch. 190, § 1.

Am. Jur. 2d, ALR and C.J.S. references. —

Construction of clause in title insurance policy excepting defects resulting from the rights of parties in possession, 94 ALR3d 1188.

§ 26-5-110. Limit of risk.

No insurer, other than a title insurer, shall retain any risk on any one (1) subject of insurance, regardless of where located or to be performed, in an amount exceeding ten percent (10%) of its surplus to policyholders.
A “subject of insurance” for the purposes of this section, as to insurance against fire and hazards other than windstorm, earthquake and other catastrophic hazards, includes all properties insured by the same insurer which are customarily considered by underwriters to be subject to loss or damage from the same fire or the same occurrence of any other hazard insured against.
Reinsurance ceded as authorized by W.S. 26-5-111 shall be deducted in determining risk retained. As to surety risks, the amount assumed by any established incorporated cosurety and the value of any security deposited, pledged or held subject to the surety’s consent and for the surety’s protection shall also be deducted.
As to alien insurers, this section relates only to risks and surplus to policyholders of the insurer’s United States branch.
“Surplus to policyholders” for the purposes of this section, in addition to the insurer’s capital and surplus, includes any voluntary reserves which are not required pursuant to law and shall be determined from the insurer’s last sworn statement on file with the commissioner, or by the last report of examination of the insurer, whichever is the more recent at time of assumption of risk.
This section does not apply to life or disability insurance, annuities, insurance of wet marine and transportation risks, worker’s compensation insurance, employers’ liability coverages nor to any policy or type of coverage as to which the maximum possible loss to the insurer is not readily ascertainable on issuance of the policy.
Limits of risk as to newly formed domestic mutual insurers shall be as provided in W.S. 26-24-109 .

History. Laws 1955, ch. 231, § 5; W.S. 1957, §§ 26-56, 26.1-92; Laws 1967, ch. 136, § 92; 1983, ch. 188, § 2; ch. 190, § 1.

§ 26-5-111. Reinsurance.

through (e) Repealed by Laws 1991, ch. 128, § 2.
An insurer may accept reinsurance only on the risks and within the limits authorized.
through (n) Repealed by Laws 1992, ch. 59, § 3.

History. Laws 1921, ch. 142, § 8; R.S. 1931, § 57-208; C.S. 1945, § 52-308; W.S. 1957, §§ 26-68, 26.1-93; Laws 1967, ch. 136, § 93; 1983, ch. 190, § 1; 1991, ch. 128 §§ 1, 2; 1992, ch. 59, § 3.

Cross references. —

For additional provisions relating to reinsurance, see §§ 26-5-112 through 26-5-119 .

Am. Jur. 2d, ALR and C.J.S. references. —

Reinsurer's liability for primary liability insurer's failure to compromise or settle, 42 ALR4th 1130.

§ 26-5-112. Credit allowed a domestic ceding insurer.

Except as provided in W.S. 26-5-113 , and in addition to any rules adopted by the commissioner pursuant to W.S. 26-5-116 relating to the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements and the circumstances pursuant to which credit will be reduced or eliminated, credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a deduction from liability on account of reinsurance ceded only if the reinsurer meets the requirements of any one (1) of the following paragraphs:
1. The reinsurance is ceded to an assuming insurer which is licensed to transact insurance in this state;
2. The reinsurance is ceded to an assuming insurer which is accredited as a reinsurer in this state and whose accreditation has not been revoked by the commissioner. An accredited reinsurer is one which:
  1. Files with the commissioner evidence of its submission to this state’s jurisdiction;
  2. Submits to this state’s authority to examine its books and records;
  3. Is licensed to transact insurance or reinsurance in at least one (1) state, or in the case of a United States branch of an alien assuming insurer is entered through and licensed to transact insurance or reinsurance in at least one (1) state;
  4. Files annually with the commissioner a copy of its annual statement filed with the insurance department of its state of domicile and a copy of its most recent audited financial statement; and
    1. and (II) Repealed by Laws 2017, ch. 29, § 2.
  5. Demonstrates to the satisfaction of the commissioner that it has adequate financial capacity to meet its reinsurance obligations and is otherwise qualified to assume reinsurance from domestic insurers. An assuming insurer is deemed to meet this requirement as of the time of its application if it maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000.00) and its accreditation has not been denied by the commissioner within ninety (90) days after submission of its application.
3. The reinsurance is ceded to an assuming insurer which is domiciled and licensed in, or in the case of a United States branch of an alien assuming insurer is entered through and licensed in, a state which employs standards regarding credit for reinsurance which meet or exceed those applicable under this section and the assuming insurer or United States branch of an alien assuming insurer:
  1. Maintains a surplus as regards policyholders in an amount not less than twenty million dollars ($20,000,000.00), provided however that this requirement does not apply to reinsurance ceded and assumed pursuant to pooling arrangements among insurers in the same holding company system; and
  2. Submits to the authority of this state to examine its books and records.
4. The reinsurance is ceded to an assuming insurer not meeting the requirements of paragraphs (i) through (iii) or (v) through (vii) of this subsection but only with respect to the insurance of risks located in jurisdictions where such reinsurance is required by applicable law or regulation of that jurisdiction;
5. The reinsurance is ceded to an assuming insurer which maintains a trust fund in a qualified United States financial institution, as defined in W.S. 26-5-114(b), for the payment of the valid claims of its United States policyholders and ceding insurers, their assigns and successors in interest. The assuming insurer shall report annually to the commissioner information substantially the same as that required to be reported on the NAIC annual statement form by licensed insurers to enable the commissioner to determine the sufficiency of the trust fund. The assuming insurer shall submit to examination of its books and records by the commissioner and bear the expense of examination. In the case of:
  1. A single assuming insurer, the trust shall consist of a trusteed account representing the assuming insurer’s liabilities attributable to business written in the United States and, in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars ($20,000,000.00). At any time after the assuming insurer has permanently discontinued underwriting new business secured by the trust for at least three (3) years, the commissioner with principal regulatory oversight of the trust may authorize a reduction in the required trusteed surplus, but only after a finding, based on an assessment of the risk, that the new required surplus level is adequate for the protection of United States ceding insurers, policyholders and claimants in light of reasonably foreseeable adverse loss development. The risk assessment may involve an actuarial review, including an independent analysis of reserves and cash flows, and shall consider all material risk factors, including when applicable the lines of business involved, the stability of the incurred loss estimates and the effect of the surplus requirements on the assuming insurer’s liquidity or solvency. The minimum required trusteed surplus may not be reduced to an amount less than thirty percent (30%) of the assuming insurer’s liabilities attributable to reinsurance ceded by United States ceding insurers covered by the trust;
  2. A group including incorporated and individual unincorporated underwriters, the trust shall consist of a trusteed account representing the group’s liabilities attributable to business written in the United States and, in addition:
    1. The group shall maintain a trusteed surplus of which one hundred million dollars ($100,000,000.00) shall be held jointly for the benefit of United States ceding insurers of any member of the group;
    2. Within ninety (90) days after its financial statements are due, the group shall make available to the commissioner an annual certification of the solvency of each underwriter by the group’s domiciliary regulator and its independent public accountants; and
    3. The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of solvency regulation and control by the group’s domiciliary regulator as are the unincorporated members.
6. The reinsurance is ceded to an assuming insurer that is certified by the commissioner as a reinsurer in this state and secures its obligations in accordance with the following provisions:
  1. Prior to certification by the commissioner, the assuming insurer must be eligible for certification. In order to be eligible for certification, the assuming insurer shall:
    1. Be domiciled and licensed to transact insurance or reinsurance in a qualified jurisdiction, as determined by the commissioner pursuant to subparagraph (C) of this paragraph;
    2. Maintain minimum capital and surplus, or its equivalent, in an amount to be determined by rule and regulation of the commissioner;
    3. Maintain financial strength ratings from two (2) or more rating agencies deemed acceptable by rule and regulation of the commissioner;
    4. Agree to submit to the jurisdiction of this state, appoint the commissioner as its agent for service of process in this state and agree to provide security for one hundred percent (100%) of the assuming insurer’s liabilities attributable to reinsurance ceded by United States ceding insurers if it resists enforcement of a final United States judgment;
    5. Agree to meet applicable information filing requirements as determined by the commissioner, both with respect to an initial application for certification and on an ongoing basis; and
    6. Satisfy any other requirements for certification deemed necessary by the commissioner.
  2. Prior to certification by the commissioner, an association including incorporated and individual unincorporated underwriters must be eligible for certification by the commissioner. In order to be eligible for certification, an association must satisfy the requirements of subparagraph (A) of this paragraph and comply with the following requirements:
    1. The association shall satisfy its minimum capital and surplus requirements through the capital and surplus equivalents, taking into account liabilities, of the association and its members, which shall include a joint central fund that may be applied to any unsatisfied obligation of the association or any of its members, in an amount determined by the commissioner to provide adequate protection;
    2. The incorporated members of the association shall not be engaged in any business other than underwriting as a member of the association and shall be subject to the same level of regulation and solvency control by the association’s domiciliary regulator as are the unincorporated members; and
    3. Within ninety (90) days after its financial statements are due to be filed with the association’s domiciliary regulator, the association shall provide to the commissioner an annual certification by the association’s domiciliary regulator of the solvency of each underwriter member or, if a certification is unavailable, financial statements, prepared by independent public accountants, of each underwriter member of the association.
  3. Prior to certification, the assuming insurer must be licensed and domiciled in a jurisdiction eligible to be considered for certification by the commissioner. The commissioner shall create and publish a list of qualified jurisdictions, under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the commissioner as a certified reinsurer. The commissioner shall:
    1. In order to determine whether the domiciliary jurisdiction of a non United States assuming insurer is eligible to be recognized as a qualified jurisdiction, evaluate the appropriateness and effectiveness of the reinsurance supervisory system of the jurisdiction, both initially and on an ongoing basis, and consider the rights, benefits and the extent of reciprocal recognition afforded by the non United States jurisdiction to reinsurers licensed and domiciled in the United States. A qualified jurisdiction shall agree to share information and cooperate with the commissioner with respect to all certified reinsurers domiciled within that jurisdiction. A jurisdiction shall not be recognized as a qualified jurisdiction if the commissioner has determined that the jurisdiction does not adequately and promptly enforce final United States judgments and arbitration awards. Additional factors may be considered in the discretion of the commissioner;
    2. Consider the list of qualified jurisdictions published through the NAIC committee process in determining qualified jurisdictions. If the commissioner approves a jurisdiction as qualified that does not appear on the list of qualified jurisdictions, the commissioner shall provide thoroughly documented justification in accordance with criteria developed under rule and regulation developed by the commissioner;
    3. Recognize as qualified jurisdictions the United States jurisdictions that meet the requirement for accreditation under the NAIC financial standards and accreditation program;
    4. If a certified reinsurer’s domiciliary jurisdiction ceases to be a qualified jurisdiction, have the discretion to suspend the reinsurer’s certification indefinitely, in lieu of revocation.
  4. Each certified reinsurer must receive a financial rating from the commissioner. The commissioner shall assign a rating to each certified reinsurer giving due consideration to the financial strength ratings that have been assigned by rating agencies deemed acceptable to the commissioner pursuant to regulation. The commissioner shall publish a list of all certified reinsurers and their ratings;
  5. A certified reinsurer shall secure obligations assumed from United States ceding insurers under this paragraph at a level consistent with its rating and as specified by rule and regulation promulgated by the commissioner. In fulfilling the requirements of this subparagraph:
    1. In order for a domestic ceding insurer to qualify for full financial statement credit for reinsurance ceded to a certified reinsurer, the certified reinsurer shall maintain security in a form acceptable to the commissioner and consistent with the provisions of W.S. 26-5-113 , or in a multibeneficiary trust in accordance with paragraph (v) of this subsection and subsection (b) of this section, except as otherwise provided in this paragraph;
    2. If a certified reinsurer maintains a trust to fully secure its obligations subject to paragraph (v) of this subsection and subsection (b) of this section and chooses to secure its obligations incurred as a certified reinsurer in the form of a multibeneficiary trust, the certified reinsurer shall maintain separate trust accounts for its obligations incurred under reinsurance agreements issued or renewed as a certified reinsurer with reduced security as permitted by this paragraph or comparable laws of other United States jurisdictions and for its obligations subject to paragraph (v) of this subsection and subsection (b) of this section. It shall be a condition to the grant of certification under this paragraph that the certified reinsurer have bound itself, by the language of the trust and agreement with the commissioner with principal regulatory oversight of each trust account, to fund, upon termination of any trust account, out of the remaining surplus of the trust any deficiency of any other trust account;
    3. The minimum trusteed surplus requirements provided in paragraph (v) of this subsection are not applicable with respect to a multibeneficiary trust maintained by a certified reinsurer for the purpose of securing obligations incurred under this paragraph, except that any trust shall maintain a minimum trusteed surplus of ten million dollars ($10,000,000.00);
    4. With respect to obligations incurred by a certified reinsurer under this paragraph, if the security is insufficient, the commissioner shall reduce the allowable credit by an amount proportionate to the deficiency and may impose further reductions in allowable credit upon finding there is a material risk the certified reinsurer’s obligations will not be paid in full when due;
    5. For purposes of this paragraph, a certified reinsurer whose certification has been terminated for any reason shall be treated as a certified reinsurer required to secure one hundred percent (100%) of its obligations. If the commissioner continues to assign a higher rating as permitted by other provisions of this section, this requirement does not apply to a certified reinsurer in inactive status or to a reinsurer whose certification has been suspended. As used in this subdivision, “terminated” refers to revocation, suspension, voluntary surrender and inactive status.
  6. If an applicant for certification has been certified as a reinsurer in an NAIC accredited jurisdiction, the commissioner may defer to that jurisdiction’s certification and may defer to the rating assigned by that jurisdiction, and the assuming insurer shall be considered to be a certified reinsurer in this state;
  7. A certified reinsurer that ceases to assume new business in this state may request to maintain its certification in inactive status in order to continue to qualify for a reduction in security for its in-force business. An inactive certified reinsurer shall continue to comply with all applicable requirements of this paragraph, and the commissioner shall assign a rating that takes into account the reasons why the reinsurer is not assuming new business, if relevant.
7. When the reinsurance is ceded to an assuming insurer in accordance with the following:
  1. The assuming insurer has its head office or is domiciled in a reciprocal jurisdiction, as applicable, and is licensed in a reciprocal jurisdiction;
  2. The assuming insurer has and maintains, on an ongoing basis, minimum capital and surplus, or its equivalent, calculated according to the methodology of its domiciliary jurisdiction in an amount specified in rules adopted by the commissioner. If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, it shall have and maintain, on an ongoing basis, minimum capital and surplus equivalents, which are net of liabilities, calculated according to the methodology applicable in its domiciliary jurisdiction and a central fund containing a balance in amounts specified in rules adopted by the commissioner;
  3. The assuming insurer has and maintains, on an ongoing basis, a minimum solvency or capital ratio, as applicable, as specified in rules adopted by the commissioner. If the assuming insurer is an association, including incorporated and individual unincorporated underwriters, it shall have and maintain, on an ongoing basis, a minimum solvency or capital ratio in the reciprocal jurisdiction where the assuming insurer has its head office or is domiciled, as applicable, and is also licensed;
  4. The assuming insurer agrees and provides adequate assurance to the commissioner, in a form specified by rules adopted by the commissioner, that:
    1. The assuming insurer shall provide prompt written notice and explanation to the commissioner if it falls below the minimum requirements set forth in subparagraphs (B) or (C) of this paragraph, or if any regulatory action is taken against it for serious noncompliance with applicable law;
    2. The assuming insurer shall consent in writing to the jurisdiction of the courts of this state and to the appointment of the commissioner as agent for service of process. The commissioner may require that consent for service of process be provided to the commissioner and included in each reinsurance agreement. Nothing in this subdivision shall limit or in any way alter the capacity of parties to a reinsurance agreement to agree to alternative dispute resolution mechanisms, except to the extent such agreements are unenforceable under applicable insolvency or delinquency laws;
    3. The assuming insurer shall consent in writing to pay all final judgments, wherever enforcement is sought, obtained by a ceding insurer or its legal successor, that have been declared enforceable in the jurisdiction where the judgment was obtained;
    4. Each reinsurance agreement shall require the assuming insurer to provide security in an amount equal to one hundred percent (100%) of the assuming insurer’s liabilities attributable to reinsurance ceded pursuant to that agreement if the assuming insurer resists enforcement of a final judgment applicable to the reinsurance ceded pursuant to that agreement that is enforceable under the law of the jurisdiction in which it was obtained or a properly enforceable arbitration award, whether obtained by the ceding insurer or by its legal successor on behalf of its resolution estate; and
    5. The assuming insurer shall confirm that it is not presently participating in any solvent scheme of arrangement which involves this state’s ceding insurers. It shall also agree to notify the ceding insurer and the commissioner and to provide security in an amount equal to one hundred percent (100%) of the assuming insurer’s liabilities to the ceding insurer should the assuming insurer enter into such a solvent scheme of arrangement. Such security shall be in a form consistent with the provisions of paragraph (vi) of this subsection, W.S. 26-5-113 and rules adopted by the commissioner.
  5. The assuming insurer or its legal successor shall provide, if requested by the commissioner, on behalf of itself and any legal predecessors, documentation to the commissioner as specified by rules adopted by the commissioner;
  6. The assuming insurer shall maintain a practice of prompt payment of claims under reinsurance agreements pursuant to criteria set forth in rules adopted by the commissioner;
  7. The assuming insurer’s supervisory authority shall confirm to the commissioner on an annual basis, as of the preceding December 31 or at the annual date otherwise statutorily reported to the reciprocal jurisdiction, that the assuming insurer complies with the requirements set forth in subparagraphs (B) and (C) of this paragraph;
  8. Nothing in this paragraph precludes an assuming insurer from providing the commissioner with information on a voluntary basis;
  9. The commissioner shall timely create and publish a list of reciprocal jurisdictions. The commissioner’s list shall include any reciprocal jurisdiction as defined under subparagraphs (j)(ii)(A) and (B) of this section and the commissioner shall consider adding any other reciprocal jurisdiction included on the NAIC list of reciprocal jurisdictions published through the NAIC committee process. The commissioner may approve a jurisdiction as a reciprocal jurisdiction that does not appear on the NAIC list of reciprocal jurisdictions in accordance with criteria specified in rules adopted by the commissioner. The commissioner may remove a jurisdiction from the list of reciprocal jurisdictions upon a determination that the jurisdiction no longer meets the requirements of a reciprocal jurisdiction, in accordance with a process set forth in rules adopted by the commissioner, except that the commissioner shall not remove from the list a reciprocal jurisdiction as defined under subparagraph (j)(ii)(A) or (B) of this section. Upon removal of a reciprocal jurisdiction from this list, credit for reinsurance ceded to an assuming insurer which has its home office or is domiciled in that jurisdiction shall be allowed if otherwise allowed pursuant to this chapter;
  10. The commissioner shall timely create and publish a list of assuming insurers that have satisfied all conditions set forth in this paragraph and to which cessions shall be granted credit in accordance with this subsection. The commissioner may add an assuming insurer to the list if an NAIC accredited jurisdiction has added the assuming insurer to a list of such assuming insurers or if, upon initial eligibility, the assuming insurer submits the information to the commissioner as required under subparagraph (D) of this paragraph and complies with any additional requirements that the commissioner may impose by rule, except to the extent that they conflict with an applicable covered agreement;
  11. If the commissioner determines that an assuming insurer no longer meets one (1) or more of the requirements under this paragraph, the commissioner may revoke or suspend the eligibility of the assuming insurer for recognition under this paragraph in accordance with procedures set forth in rules adopted by the commissioner. While an assuming insurer’s eligibility is suspended, no reinsurance agreement issued, amended or renewed after the effective date of the suspension qualifies for credit except to the extent that the assuming insurer’s obligations under the contract are secured in accordance with W.S. 26-5-113. If an assuming insurer’s eligibility is revoked, no credit for reinsurance may be granted after the effective date of the revocation with respect to any reinsurance agreements entered into by the assuming insurer, including reinsurance agreements entered into prior to the date of revocation, except to the extent that the assuming insurer’s obligations under the contract are secured in a form acceptable to the commissioner and consistent with the provisions of W.S. 26-5-113;
  12. If subject to a legal process of rehabilitation, liquidation or conservation, as applicable, the ceding insurer or its representative may seek and, if determined appropriate by the court in which the proceedings are pending, may obtain an order requiring that the assuming insurer post security for all outstanding ceded liabilities;
  13. Nothing in this paragraph shall limit or in any way alter the capacity of parties to a reinsurance agreement to agree on requirements for security or other terms in that reinsurance agreement, except as expressly prohibited by this chapter or other applicable law or rule;
  14. Credit may be taken under this paragraph only for reinsurance agreements entered into, amended, or renewed on or after July 1, 2021 and only with respect to losses incurred and reserves reported on or after the later of the date on which the assuming insurer has met all eligibility requirements of this paragraph and the effective date of the new reinsurance agreement, amendment or renewal. This subparagraph does not alter or impair a ceding insurer’s right to take credit for reinsurance, to the extent that credit is not available under this paragraph, as long as the reinsurance qualifies for credit under any other applicable provision of this chapter;
  15. Nothing in this paragraph shall authorize an assuming insurer to withdraw or reduce the security provided under any reinsurance agreement except as permitted by the terms of the agreement;
  16. Nothing in this paragraph shall limit, or in any way alter, the capacity of parties to any reinsurance agreement to renegotiate the agreement.
A trust under paragraph (a)(v) of this section shall be established in a form approved by the commissioner. The trust instrument shall provide that contested claims shall be valid and enforceable upon the final order of any court of competent jurisdiction in the United States. The trust shall vest legal title to its assets in the trustees of the trust for its United States policyholders and ceding insurers, their assigns and successors in interest. The trust and the assuming insurer shall be subject to examination as determined by the commissioner. The trust described herein shall remain in effect for as long as the assuming insurer shall have outstanding obligations due under the reinsurance agreements subject to the trust. No later than February 28 of each year the trustees of the trust shall report to the commissioner in writing setting forth the balance of the trust and listing the trust’s investments at the preceding year end and shall certify the date of termination of the trust, if so planned, or certify that the trust shall not expire prior to the next following December 31.
If the assuming insurer is not licensed, certified or accredited to transact insurance or reinsurance in this state, the credit permitted by paragraphs (a)(iii) and (v) of this section shall not be allowed unless the assuming insurer agrees in the reinsurance agreements:
1. That in the event of the failure of the assuming insurer to perform its obligations under the terms of the reinsurance agreement, the assuming insurer, at the request of the ceding insurer, shall submit to the jurisdiction of any court of competent jurisdiction in any state of the United States, shall comply with all requirements necessary to give the court jurisdiction, and shall abide by the final decision of the court or of any appellate court in the event of an appeal; and
2. To designate the commissioner as its true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the ceding insurer.
Subsection (c) of this section shall not supersede the obligation of the parties to a reinsurance agreement to arbitrate their disputes, if such an obligation is created in the agreement.
If an accredited or certified reinsurer ceases to meet the requirements for accreditation or certification, the commissioner may suspend or revoke the reinsurer’s accreditation or certification in accordance with the following:
1. The commissioner shall give the reinsurer notice and opportunity for hearing. The suspension or revocation shall not take effect until after the commissioner’s order on hearing, unless:
  1. The reinsurer waives its right to a hearing;
  2. The commissioner’s order is based on regulatory action by the reinsurer’s domiciliary jurisdiction or the voluntary surrender or termination of the reinsurer’s eligibility to transact insurance or reinsurance business in its domiciliary jurisdiction or in the primary certifying state of the reinsurer under subparagraph (a)(vi)(F) of this section; or
  3. The commissioner finds that an emergency requires immediate action and a court of competent jurisdiction has not stayed the commissioner’s action.
2. While a reinsurer’s accreditation or certification is suspended, no reinsurance contract issued or renewed after the effective date of the suspension qualifies for credit except to the extent that the reinsurer’s obligations under the contract are secured in accordance with W.S. 26-5-113 . If a reinsurer’s accreditation or certification is revoked, no credit for reinsurance may be granted after the effective date of the revocation except to the extent that the reinsurer’s obligations under the contract are secured in accordance with subparagraph (a)(vi)(E) of this section or W.S. 26-5-113 .
A ceding insurer shall take steps to manage its reinsurance recoverables proportionate to its own book of business. A domestic ceding insurer shall notify the commissioner within thirty (30) days after reinsurance recoverables from any single assuming insurer or group of affiliated assuming insurers exceeds fifty percent (50%) of the domestic ceding insurer’s last reported surplus to policyholders, or after it is determined that reinsurance recoverables from any single assuming insurer or group of affiliated assuming insurers is likely to exceed this limit. The notification shall demonstrate that the exposure is safely managed by the domestic ceding insurer.
A ceding insurer shall take steps to diversify its reinsurance program. A domestic ceding insurer shall notify the commissioner within thirty (30) days after ceding to any single assuming insurer or group of affiliated assuming insurers more than twenty percent (20%) of the ceding insurer’s gross written premium in the prior calendar year, or after it has determined that the reinsurance ceded to any single assuming insurer or group of affiliated assuming insurers is likely to exceed this limit. The notification shall demonstrate the exposure is safely managed by the domestic ceding insurer.
Credit for reinsurance ceded to a certified reinsurer is limited to reinsurance contracts entered or renewed on or after the effective date of the certification of the assuming insurer by the commissioner.
As used in this section:
1. “Covered agreement” means an agreement entered into pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, 31 U.S.C. §§ 313 and 314, that is currently in effect or in a period of provisional application and that addresses the elimination, under specified conditions, of collateral requirements as a condition for entering into any reinsurance agreement with a ceding insurer domiciled in this state or for allowing the ceding insurer to recognize credit for reinsurance;
2. “Reciprocal jurisdiction” means any of the following:
  1. A non-United States jurisdiction that is subject to an in-force covered agreement with the United States, each within its legal authority, or, in the case of a covered agreement between the United States and the European Union, is a member state of the European Union;
  2. A United States jurisdiction that meets the requirements for accreditation under the NAIC financial standards and accreditation program;
  3. A qualified jurisdiction, as determined by the commissioner pursuant to subparagraph (a)(vi)(C) of this section, that is not otherwise described in subparagraphs (A) or (B) of this paragraph and that meets certain additional requirements, consistent with the terms and conditions of in-force covered agreements, as specified in rules adopted by the commissioner.

History. Laws 1992, ch. 59, § 1; 1994, ch. 76, § 2; 2017 ch. 29, §§ 1, 2, effective July 1, 2017; 2021 ch. 25, § 1, effective July 1, 2021.

The 2017 amendments. — The first 2017 amendment, by ch. 29, § 1, effective July 1, 2017, in (a) added “and in addition…reduced or eliminated” and “the reinsurer…following paragraphs”; added (a)(ii)(E); added the last sentence of (a)(v); in (a)(v)(A) added the last three sentences; added designation (a)(v)(B), added designation (a)(v)(B)(I) and (a)(v)(B)(II), at the beginning of (a)(v)(B)(II) added “Within ninety (90) days after its financial statements are due,” redesignated former (a)(v)(C) as (a)(v)(B)(III); added (a)(vi); in (c) added “certified” following “licensed”, in (c)(ii) substituted “insurer” for “company;” added (e) through (h); and made related changes.

The second 2017 amendment, by ch. 29, § 2, effective July 1, 2017, repealed former (a)(ii)(D)(I), which read: “Maintains a surplus as regards policyholders in an amount which is not less than twenty million dollars ($20,000,000.00) and whose accreditation has not been denied by the commissioner within ninety (90) days of its submission; or”; and repealed former (a)(ii)(D)(II), which read: “Maintains a surplus as regards policyholders in an amount less than twenty million dollars ($20,000,000.00) and whose accreditation has been approved by the commissioner.”

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

The 2021 amendment, effective July 1, 2021, added "through (vii)" in (a)(iv); added (a)(vii); and added (j).

§ 26-5-113. Reduction from liability for reinsurance ceded by a domestic insurer to an assuming insurer.

A reduction from liability for the reinsurance ceded by a domestic insurer to an assuming insurer not meeting the requirements of W.S. 26-5-112 shall be allowed in an amount not exceeding the liabilities carried by the ceding insurer, provided that the commissioner may adopt rules and regulations establishing additional requirements relating to or setting forth the valuation of assets or reserve credits, the amount and forms of security supporting reinsurance arrangements described in W.S. 26-5-116 and the circumstances pursuant to which credit will be reduced or eliminated. The reduction shall be in the amount of funds held by or on behalf of the ceding insurer, including funds held in trust for the ceding insurer, under a reinsurance contract with the assuming insurer as security for the payment of obligations thereunder, if the security is held in the United States subject to withdrawal solely by, and under the exclusive control of, the ceding insurer, or, in the case of a trust, held in a qualified United States financial institution, as defined in W.S. 26-5-114(b). This security may be in the form of:
1. Cash;
2. Securities listed by the securities valuation office of the NAIC, including those deemed exempt from filing as defined by the purposes and procedures manual of the NAIC securities valuation office, and qualifying as admitted assets;
3. Clean, irrevocable, unconditional letters of credit issued or confirmed by a qualified United States institution no later than December 31 in respect of the year for which filing is being made, and in the possession of the ceding insurer on or before the filing date of its annual statement. Letters of credit meeting applicable standards of issuer acceptability as of the dates of their issuance or confirmation shall, notwithstanding the issuing or confirming institution’s subsequent failure to meet applicable standards of issuer acceptability, continue to be acceptable as security until their expiration, extension, renewal, modification or amendment, whichever first occurs; or
4. Any other form of security acceptable to the commissioner.

History. Laws 1992, ch. 59, § 1; 2017 ch. 29, § 1, effective July 1, 2017.

The 2017 amendment, effective July 1, 2017, in (a) added “provided that the commissioner…. will be reduced or eliminated”, in (a)(ii) substituted “NAIC, including those deemed exempt from filing as defined by the purposes and procedures manual of the NAIC securities valuation office” for “National Association of Insurance Commissioners,” in (a)(iii) substituted “insurer” for “company,” and made one related change.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-5-114. Qualified United States financial institutions.

For purposes of W.S. 26-5-113(a)(iii), a “qualified United States financial institution” means an institution that:
1. Is organized or, in the case of a United States office of a foreign banking organization licensed, under the laws of the United States or any state thereof;
2. Is regulated, supervised and examined by United States federal or state authorities having regulatory authority over banks and trust companies; and
3. Has been determined by either the commissioner, or the securities valuation office of the National Association of Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
A “qualified United States financial institution” means, for purposes of those provisions of W.S. 26-5-112 and 26-5-113 specifying those institutions that are eligible to act as a fiduciary of a trust, an institution that:
1. Is organized or, in the case of a United States branch or agency office of a foreign banking organization licensed, under the laws of the United States or any state thereof and has been granted authority to operate with fiduciary powers; and
2. Is regulated, supervised and examined by federal or state authorities having regulatory authority over banks and trust companies.

History. Laws 1992, ch. 59, § 1.

§ 26-5-115. Reinsurance payable without diminution due to insolvency of ceding insurer.

No credit or reduction of liability for reinsurance ceded under W.S. 26-5-112 or 26-5-113 shall be allowed unless the agreement provides that the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding insurer without diminution due to the insolvency of the ceding insurer.

History. Laws 1992, ch. 59, § 1.

§ 26-5-116. Rules and regulations; reporting.

The commissioner may adopt rules and regulations implementing the provisions of W.S. 26-5-111 through 26-5-117 .
Upon the commissioner’s request, an insurer shall promptly inform him in writing of the cancellation or any other material change of any of its reinsurance treaties or arrangements.
In addition to the authority provided by subsection (a) of this section, the commissioner may adopt rules and regulations applicable to reinsurance arrangements. A regulation adopted pursuant to this subsection may apply only to reinsurance relating to:
1. Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits;
2. Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period;
3. Variable annuities with guaranteed death or living benefits;
4. Long-term care insurance policies; or
5. Any other life and health insurance and annuity products as to which the NAIC adopts model regulatory requirements with respect to credit for reinsurance.
A regulation adopted pursuant to paragraph (c)(i) or (ii) of this section may apply to a treaty containing policies issued on or after January 1, 2015 and policies issued prior to January 1, 2015 if the risk pertaining to the policies issued prior to January 1, 2015 is ceded in connection with the treaty, in whole or in part, on or after January 1, 2015.
A regulation adopted pursuant to subsection (c) of this section may require the ceding insurer, in calculating the amounts or forms of security required to be held under rules promulgated under this section, to use the valuation manual adopted by the NAIC under section 11B (1) of the NAIC standard valuation law, including all amendments adopted by the NAIC and in effect on the date the calculation is made, to the extent applicable.
A regulation adopted pursuant to subsection (c) of this section shall not apply to cessions to an assuming insurer that:
1. Meets the conditions set forth in W.S. 26-5-112(a)(vii) or, if this state has not adopted provisions substantially equivalent to section 2F of the Credit for Reinsurance Model Law, the assuming insurer is operating in accordance with provisions substantially equivalent to section 2F of the Credit for Reinsurance Model Law in a minimum of five (5) other states;
2. Is certified in this state or, if this state has not adopted provisions substantially equivalent to section 2E of the Credit for Reinsurance Model Law, certified in a minimum of five (5) other states; or
3. Maintains at least two hundred fifty million dollars ($250,000,000.00) in capital and surplus when determined in accordance with the NAIC accounting practices and procedures manual, including all amendments adopted by the NAIC, excluding the impact of any permitted or prescribed practices, and is:
  1. Licensed in at least twenty-six (26) states; or
  2. Licensed in at least ten (10) states and licensed or accredited in a total of at least thirty-five (35) states.
The authority to adopt rules pursuant to subsection (c) of this section does not limit the commissioner’s general authority to adopt rules pursuant to subsection (a) of this section.

History. Laws 1992, ch. 59, § 1; 2017 ch. 29, § 1, effective July 1, 2017; 2021 ch. 25, § 1, effective July 1, 2021.

The 2017 amendment, effective July 1, 2017, added (c) through (g).

The 2021 amendment, effective July 1, 2021, added (f)(i); and redesignated former (f)(i) and (f)(ii) as (f)(ii) and (f)(iii).

§ 26-5-117. Reinsurance agreements affected.

W.S. 26-5-112 through 26-5-116 shall apply to all cessions after the effective date of this act under reinsurance agreements which have had an inception, anniversary or renewal date not less than six (6) months after the effective date of this act.

History. Laws 1992, ch. 59, § 1.

§ 26-5-118. [Repealed.]

Repealed by Laws 1994, ch. 76, § 3.

Editor's notes. —

This section, which derived from Laws 1992, ch. 59, § 1, related to life reinsurance agreements and limitations thereon.

§ 26-5-119. Life and disability reinsurance agreements; limitations.

This section shall apply to all domestic life and domestic disability insurers and to all other licensed life and disability insurers which are not subject to a substantially similar law or regulation in their domiciliary state. This section shall also similarly apply to licensed property and casualty insurers with respect to their accident and health business. This section shall not apply to assumption reinsurance, yearly renewable term reinsurance or certain nonproportional reinsurance such as stop loss or catastrophe reinsurance.
1. No insurer subject to this section shall, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the department if, by the terms of the reinsurance agreement, in substance or effect, any of the following conditions exist: (b) (i) No insurer subject to this section shall, for reinsurance ceded, reduce any liability or establish any asset in any financial statement filed with the department if, by the terms of the reinsurance agreement, in substance or effect, any of the following conditions exist:
  1. Renewal expense allowances provided or to be provided to the ceding insurer by the reinsurer in any accounting period, are not sufficient to cover anticipated allocable renewal expenses of the ceding insurer on the portion of the business reinsured, unless a liability is established for the present value of the shortfall using assumptions equal to the applicable statutory reserve basis on the business reinsured. Those expenses include commissions, premium taxes and direct expenses including, but not limited to, billing, valuation, claims and maintenance expected by the company at the time the business is reinsured;
  2. The ceding insurer can be deprived of surplus or assets at the reinsurer’s option or automatically upon the occurrence of some event, such as the insolvency of the ceding insurer, except that termination of the reinsurance agreement by the reinsurer for nonpayment of reinsurance premiums or other amounts due, such as modified coinsurance reserve adjustments, interest and adjustments on funds withheld, and tax reimbursements shall not be considered to be a deprivation of surplus or assets;
  3. The ceding insurer is required to reimburse the reinsurer for negative experience under the reinsurance agreement. Offsetting experience refunds against current and prior years’ losses under the agreement or payment by the ceding insurer of an amount equal to the current and prior years’ losses under the agreement upon voluntary termination of in-force reinsurance by the ceding insurer shall not be considered a reimbursement to the reinsurer for negative experience. Voluntary termination does not include situations where termination occurs because of unreasonable provisions which allow the reinsurer to reduce its risk under the agreement;
  4. The ceding insurer must, at specific points in time scheduled in the agreement, terminate or automatically recapture all or part of the reinsurance ceded;
  5. The reinsurance agreement involves the possible payment by the ceding insurer to the reinsurer of amounts other than from income realized from the reinsured policies;
  6. The treaty does not transfer all of the significant risk inherent in the business being reinsured. The following table identifies for a representative sampling of products or type of business, the risks which are considered to be significant. For products not specifically included, the risks determined to be significant shall be consistent with this table. The risk categories are:
    1. Morbidity;
    2. Mortality;
    3. Lapse, meaning the risk that a policy will voluntarily terminate prior to the recoupment of a statutory surplus strain experienced at issue of the policy;
    4. Credit quality, meaning the risk that invested assets supporting the reinsured business will decrease in value. The main hazards are that assets will default or that there will be a decrease in earning power. Credit quality excludes market value declines due to changes in interest rate;
    5. Reinvestment, meaning the risk that interest rates will fall and funds reinvested coupon payments or monies received upon asset maturity or call will therefore earn less than expected. If asset durations are less than liability durations, the mismatch will increase;
    6. Disintermediation, meaning the risk that interest rates rise and policy loans and surrenders increase or maturing contracts do not renew at anticipated rates of renewal.
      TYPE OF INSURANCE RISK CATEGORY I II III IV V VI Health Insurance-other than long term care insurance or long term disability insurance + 0 + 0 0 0 Health Insurance-long term care insurance or long term disability insurance + 0 + + + 0 Immediate Annuities 0 + 0 + + 0 Single Premium Deferred Annuities 0 0 + + + + Flexible Premium Deferred Annuities 0 0 + + + + Guaranteed Interest Contracts 0 0 0 + + + Other Annuity Deposit Business 0 0 + + + + Single Premium Whole Life 0 + + + + + Traditional Non-Par Permanent 0 + + + + + Traditional Non-Par Term 0 + + 0 0 0 Traditional Par Permanent 0 + + + + + Traditional Par Term 0 + + 0 0 0 Adjustable Premium Permanent 0 + + + + + Indeterminate Premium Permanent 0 + + + + + Universal Life Flexible Premium 0 + + + + + Universal Life Fixed Premium 0 + + + + + Universal Life Fixed Premium dump-in premiums allowed 0 + + + + + + — Significant 0 — Insignificant
      
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  7. 1. The credit quality, reinvestment or disintermediation risk is significant for the business reinsured and the ceding company does not, other than for the classes of business excepted in subdivision (G)(II) of this paragraph either transfer the underlying assets to the reinsurer, legally segregate such assets in a trust or escrow account or otherwise establish a mechanism which legally segregates, by contract or contract provision, the underlying assets; (G) (I) The credit quality, reinvestment or disintermediation risk is significant for the business reinsured and the ceding company does not, other than for the classes of business excepted in subdivision (G)(II) of this paragraph either transfer the underlying assets to the reinsurer, legally segregate such assets in a trust or escrow account or otherwise establish a mechanism which legally segregates, by contract or contract provision, the underlying assets;
    2. Notwithstanding the requirements of subdivision (G)(I) of this paragraph, the assets supporting the reserves for the following classes of business and any classes of business which do not have a significant credit quality, reinvestment or disintermediation risk may be held by the ceding company without segregation of the assets:
      1. Health insurance — long term care or long term disability;
      2. Traditional nonparticipating permanent;
      3. Traditional participating permanent;
      4. Adjustable premium permanent;
      5. Indeterminate premium permanent;
      6. Universal life fixed premium, with no dump-in premiums allowed.
    3. The associated formula for determining the reserve interest rate adjustment shall use a formula which reflects the ceding company’s investment earnings and incorporates all realized and unrealized gains and losses reflected in the statutory statement. The following is an acceptable formula:
      Rate = 2(I + CG)/X+Y-I-CG
      
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      Where: I is the net investment income CG is capital gains less capital losses X is the current year cash and invested assets plus investment income due and accrued less borrowed money Y is the same as X but for the prior
      
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  8. Settlements are made less frequently than quarterly or payments due from the reinsurer are not made in cash within ninety (90) days of the settlement date;
  9. The ceding insurer is required to make representations or warranties not reasonably related to the business being reinsured;
  10. The ceding insurer is required to make representations or warranties about future performance of the business being reinsured;
  11. The reinsurance agreement is entered into for the principal purpose of producing significant surplus aid for the ceding insurer while not transferring all of the significant risks inherent in the business reinsured and, in substance or effect, the expected potential liability to the ceding insurer remains basically unchanged.
1. No reinsurance agreement or amendment to any agreement shall be used to reduce any liability or to establish any asset in any financial statement filed with the department, unless the agreement, amendment or a binding letter of intent has been duly executed by both parties no later than the “as of date” of the financial statement; (c) (i) No reinsurance agreement or amendment to any agreement shall be used to reduce any liability or to establish any asset in any financial statement filed with the department, unless the agreement, amendment or a binding letter of intent has been duly executed by both parties no later than the “as of date” of the financial statement;
Insurers subject to this section shall reduce to zero (0) by December 31, 1995 any reserve credits or assets established with respect to reinsurance agreements entered into prior to April 1, 1994 which, under the provisions of this section would not be entitled to recognition of the reserve credits or assets, provided, however, that the reinsurance agreements shall have been in compliance with laws or regulations in existence immediately preceding the effective date of this section.
The commissioner may promulgate reasonable rules and regulations and issue orders necessary to implement the provisions of this section.

(ii) Notwithstanding paragraph (i) of this subsection, an insurer subject to this section may, with the prior approval of the commissioner, take reserve credit or establish assets the commissioner deems consistent with this code, rules or regulations, including actuarial interpretations or standards adopted by the department;

Agreements entered into after April 1, 1994 which involve the reinsurance of business issued prior to the effective date of the agreements, along with any subsequent amendments thereto, shall be filed by the ceding company with the commissioner within thirty (30) days from their date of execution. Each filing shall include data detailing the financial impact of the transaction. The ceding insurer’s actuary who signs the financial statement actuarial opinion with respect to valuation of reserves shall consider this section and any applicable actuarial standards of practice when determining the proper credit in financial statements filed with the department. The actuary shall maintain adequate documentation and be prepared upon request to describe the actuarial work performed for inclusion in the financial statements and to demonstrate that the work conforms to this section; (iii) (A) Agreements entered into after April 1, 1994 which involve the reinsurance of business issued prior to the effective date of the agreements, along with any subsequent amendments thereto, shall be filed by the ceding company with the commissioner within thirty (30) days from their date of execution. Each filing shall include data detailing the financial impact of the transaction. The ceding insurer’s actuary who signs the financial statement actuarial opinion with respect to valuation of reserves shall consider this section and any applicable actuarial standards of practice when determining the proper credit in financial statements filed with the department. The actuary shall maintain adequate documentation and be prepared upon request to describe the actuarial work performed for inclusion in the financial statements and to demonstrate that the work conforms to this section;
Any increase in surplus net of federal income tax resulting from arrangements described in subparagraph (A) of this paragraph shall be identified separately on the insurer’s statutory financial statement as a surplus item with aggregate write-ins for gains and losses in surplus in the capital and surplus account, and recognition of the surplus increase as income shall be reflected on a net of tax basis in the “reinsurance ceded” line, of the annual statement as earnings emerge from the business reinsured.

(ii) In the case of a letter of intent, a reinsurance agreement or an amendment to a reinsurance agreement must be executed within a reasonable period of time, not exceeding ninety (90) days from the execution date of the letter of intent, in order for credit to be granted for the reinsurance ceded;

(iii) The reinsurance agreement shall contain provisions which provide that:

(A) The agreement shall constitute the entire agreement between the parties with respect to the business being reinsured thereunder and that there are no understandings between the parties other than as expressed in the agreement; and

(B) Any change or modification to the agreement shall be null and void unless made by amendment to the agreement and signed by both parties.

History. Laws 1994, ch. 76, § 1.

Editor's notes. —

There is no subparagraph (b)(i)(I) or (b)(i)(L) in this section as it appears in the printed acts.

Chapter 6 Assets and Liabilities

Article 1. Assets and Liabilities Generally

§ 26-6-101. Assets allowed.

In any determination of an insurer’s financial condition, only the insurer owned assets set forth and allowed in the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual or authorized in accordance with this section shall be allowed as assets. Assets not inconsistent with this article shall be allowed at values the commissioner determines, if he deems them available for the payment of losses and claims.
1. through (xiv) Repealed by Laws 2001, ch. 9, § 2.

History. Laws 1967, ch. 136, § 94; W.S. 1957, § 26.1-94; Laws 1983, ch. 190, § 1; 2001, ch. 9, §§ 1, 2.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-6-102. Assets not allowed.

In addition to assets impliedly excluded by the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual pursuant to W.S. 26-6-101 , the following are not allowed as assets in any determination of an insurer’s financial condition:
1. Goodwill, trade names and other similar intangible assets;
2. through (v) Repealed by Laws 2001, ch. 9, § 2.

History. Laws 1967, ch. 136, § 95; W.S. 1957, § 26.1-95; Laws 1983, ch. 190, § 1; 2001, ch. 9, §§ 1, 2.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-6-103. Liabilities generally.

In any determination of an insurer’s financial condition, capital stock and liabilities to be charged against its assets include the capital stock and liability items set forth in the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual and the following:
1. The amount of its capital stock outstanding, if any;
2. The amount, estimated consistent with this code, necessary to pay all of its unpaid losses and claims incurred on or prior to the date of statement together with the expenses of adjustment or settlement thereof;
3. Concerning life insurance and annuity contracts and disability and accidental death benefits in or supplemental thereto:
  1. The amount of reserves on life insurance policies and annuity contracts in force, valued according to the mortality tables, rates of interest and methods adopted pursuant to this code [title 26] which are applicable thereto;
  2. Reserves for disability benefits for both active and disabled lives;
  3. Reserves for accidental death benefits;
  4. Any additional reserves the commissioner requires consistent with applicable customary and general practice in insurance accounting.
4. Concerning disability insurance, the reserves required under W.S. 26-6-107 ;
5. Concerning insurance other than specified in paragraphs (iii) and (iv) of this subsection, and other than title insurance, the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force, computed in accordance with this chapter;
6. Taxes, expenses and other obligations due or accrued at the date of the statement.

History. Laws 1967, ch. 136, § 96; W.S. 1957, § 26.1-96; Laws 1983, ch. 190, § 1; 2001, ch. 9, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-6-104. Disallowance of “wash” transactions.

The commissioner, after a hearing thereon, shall disallow as an asset or as a credit against liabilities any reinsurance he finds to have been arranged principally for the purpose of deception as to the ceding insurer’s financial condition on the date of an insurer’s financial statement. Without limiting the general purport of this provision, reinsurance of any substantial part of the insurer’s outstanding risks contracted for in fact within four (4) months prior to the date of a financial statement and cancelled after the date of that statement, or reinsurance under which the reinsurer bears no substantial insurance risk or chance of net loss to itself, is prima facie evidence of an arrangement principally for the purpose of deception.
The commissioner, after a hearing thereon, shall disallow as an insurer’s asset any deposit, funds or other assets he finds:
1. Not to be in good faith the insurer’s property;
2. Not freely subject to the insurer’s withdrawal or liquidation at any time for the payment or discharge of claims or other obligations arising under its policies; and
3. To be resulting from arrangements made principally for the purpose of deception as to the insurer’s financial condition on the date of any financial statement of the insurer.
The commissioner may suspend or revoke the certificate of authority of any insurer which has knowingly been a party to any actual or attempted deception.

History. Laws 1967, ch. 136, § 98; W.S. 1957, § 26.1-98; W.S. 1977, § 26-6-105 ; Laws 1983, ch. 190, § 1.

§ 26-6-105. Unearned premium reserve; generally.

As to property, casualty and surety insurances the insurer shall maintain an unearned premium reserve on all policies in force as required under regulations adopted by the commissioner. In promulgating regulations under this subsection, the commissioner shall take into consideration standards recommended by the National Association of Insurance Commissioners Accounting Practices and Procedures Manual.
Repealed by Laws 2000, ch. 57, § 2.

History. Laws 1967, ch. 136, § 99; W.S. 1957, § 26.1-99; W.S. 1977, § 26-6-106 ; Laws 1983, ch. 190, § 1; 2000, ch. 57, §§ 1, 2.

§ 26-6-106. Unearned premium reserve; marine and transportation insurance.

As to marine and transportation insurance, the unearned premium reserve shall be determined pursuant to the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual.

History. Laws 1967, ch. 136, § 100; W.S. 1957, § 26.1-100; W.S. 1977, § 26-6-107 ; Laws 1983, ch. 190, § 1; 2001, ch. 9, § 1.

§ 26-6-107. Unearned premium reserve; reserve for disability insurance.

For all disability insurance policies the insurer shall maintain an active life reserve which shall place a sound value on its liabilities under those policies and be not less than the reserve according to appropriate standards set forth in regulations the commissioner issues, but not less in the aggregate than the pro rata gross unearned premiums for the policies.

History. Laws 1967, ch. 136, § 101; W.S. 1957, § 26.1-101; W.S. 1977, § 26-6-108 ; Laws 1983, ch. 190, § 1.

§ 26-6-108. Unearned premium reserve; increase of inadequate reserves.

If an insurer’s loss experience shows or the commissioner determines that its loss reserves are inadequate, the insurer shall maintain loss reserves in an increased amount as is needed to make them adequate.

History. Laws 1967, ch. 136, § 102; W.S. 1957, § 26.1-102; W.S. 1977, § 26-6-109; Laws 1983, ch. 190, § 1.

Article 2. Standard Valuation Law Policies and Contracts

§ 26-6-201. Short title; definitions.

This article is known as the Standard Valuation Law.
For the purposes of this article the following definitions shall apply on or after the operative date of the valuation manual. To the extent a definition which follows is inconsistent or different from a definition elsewhere in this code, the definition in this section shall be applicable for the purposes of this article:
1. “Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness or medical conditions and as may be specified in the valuation manual;
2. “Appointed actuary” means a qualified actuary who is appointed in accordance with the valuation manual to prepare the actuarial opinion required in W.S. 26-6-208(h);
3. “Deposit type contract” means contracts that do not incorporate mortality or morbidity risks and as may be specified in the valuation manual;
4. “Insurer” means an entity which:
  1. Has written, issued or reinsured life insurance contracts, accident and health insurance contracts or deposit type contracts in this state and has at least one (1) of the contracts or policies in force or on claim; or
  2. Has written, issued or reinsured life insurance contracts, accident and health insurance contracts or deposit type contracts in any state and is required to hold a certificate of authority to write life insurance, accident and health insurance or deposit type contracts in this state.
5. “Life insurance” means contracts that incorporate mortality risk, including annuity and pure endowment contracts, and as may be specified in the valuation manual;
6. “Policyholder behavior” means any action a policyholder, contract holder or any other person with the right to elect options, such as a certificate holder, may take under a policy or contract subject to this article including lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization or benefit elections prescribed by the policy or contract but excluding events of mortality or morbidity that result in benefits prescribed in their essential aspects by the terms of the policy or contract;
7. “Principle based valuation” means a reserve valuation that uses one (1) or more methods or one (1) or more assumptions determined by the insurer and that complies with W.S. 26-6-210 as specified in the valuation manual;
8. Except as provided in W.S. 26-6-208(g), “qualified actuary” means an individual who is qualified to sign the applicable statement of actuarial opinion in accordance with the American Academy of Actuaries qualification standards for actuaries signing the statements and who meets the requirements specified in the valuation manual;
9. “Tail risk” means a risk that occurs where the frequency of low probability events is higher than expected under a normal probability distribution or where there are observed events of very significant size or magnitude;
10. “Valuation manual” means the manual of valuation instructions adopted by the NAIC as specified in this article and as subsequently amended.

History. Laws 1967, ch. 136,§ 104; W.S. 1957, § 26.1-104; Laws 1975, ch. 99,§ 1; W.S. 1977, § 26-6-111; Laws 1981, ch. 121,§ 2; 1983, ch. 31, § 1; ch. 190, § 1; 2017 ch. 67, § 2, effective March 1, 2017.

The 2017 amendment, added (b).

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-202. Annual valuation of reserves required; minimum standard valuation; other valuations accepted; conditions.

History. Laws 1967, ch. 136, § 104; W.S. 1957, § 26.1-104; Laws 1975, ch. 99, § 1; W.S. 1977, § 26-6-111; Laws 1981, ch. 121, § 2; 1983, ch. 31, § 1; ch. 190, § 1; 1994, ch. 76, § 2; 2017 ch. 67, §§ 2, 3, effective March 1, 2017.

The 2017 amendments. — The first 2017 amendment, by ch. 67 § 2, added the introductory language of (a), and redesignated the existing paragraph as (a)(i), and added (a)(ii) through (a)(iv); in (a)(i), substituted “issued prior to the operative date of the valuation manual” for “and may certify the amount of those reserves, specifying the mortality tables, interest rates and methods used in calculating the reserves”; in the middle of (c), substituted “the appointed” for “a qualified”; in the middle of (d), substituted “greater” for “higher”; and added (e).

The second 2017 amendment, by ch 67 § 3, repealed former (b), which read: “Instead of the valuation of reserves required of any foreign or alien insurer, the commissioner may accept any valuation from the insurance supervisory official of any state or other jurisdiction if that valuation complies with the minimum standard provided in this article and if the official of the state or jurisdiction accepts as sufficient and valid for all legal purposes the commissioner's certificate of valuation when the certificate states the valuation was made in a manner in which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by the law of that state or jurisdiction. The commissioner may accept the valuation made by any domestic life insurer upon satisfactory proof of its correctness and compliance with W.S. 26-6-208 .”

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

While neither amendment gave effect to the other(s), both(all) have been given effect in this section as set out above.

§ 26-6-203. Reserve calculation; valuation net premium exceeding gross premium charged.

If in any contract year the gross premium charged by any insurer on any policy or contract is less than the valuation net premium for the policy or contract calculated by the method used in calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum reserve for the policy or contract shall be the greater of either the reserve calculated according to:
1. The mortality table, rate of interest and method actually used for the policy or contract; or
2. The method actually used for the policy or contract but using the minimum valuation standards of mortality and rate of interest and replacing the valuation net premium with the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in this section are the standards stated in W.S. 26-6-205(b) and 26-6-206(b). However, for any life insurance policy issued on or after January 1, 1998 for which the gross premium in the first policy year exceeds that of the second year and for which no comparable additional benefit is provided in the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the foregoing provisions of this subsection shall be applied as if the method actually used in calculating the reserve for such policy were the method described in W.S. 26-6-205(c)(i). The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with W.S. 26-6-205(c) and (d), and the minimum reserve calculated in accordance with this subsection.

The 2017 amendment, in (a), deleted “life” preceding “insurer on any policy.”

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-6-204. [Repealed.]

Repealed by Laws 1994, ch. 76, § 3.

Editor's notes. —

This section, which derived from Laws 1967, ch. 136, § 104, related to an exception to the minimum standard valuation for policies and contracts issued prior to operative date of article 2 of chapter 16 of this code.

§ 26-6-205. Computation of minimum standard; reserve valuation method, life insurance and endowment benefits; annuity and pure endowment benefits; minimum reserves; reserve calculation; indeterminate plans.

History. Laws 1967, ch. 136, § 104; W.S. 1957, § 26.1-104; Laws 1975, ch. 99, § 1; W.S. 1977, § 26-6-111; Laws 1981, ch. 121, § 2; 1983, ch. 31, § 1; ch. 190, § 1; 1994, ch. 76, §§ 2, 3; 2006, ch. 114, § 1; 2017 ch. 67, § 2, effective March 1, 2017.

The 2006 amendment, deleted “and” at the end of (c)(ii)(C), and made a related change.

Laws 2006, ch. 114, § 5 makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 24, 2006.

The 2017 amendment, in the middle of the introductory language of (b), inserted “and prior to the operative date of the valuation manual”; in (b)(i), deleted “all” preceding “ordinary policies”; in (b)(ii), deleted “all” preceding “industrial life”; in the last sentence of (f), substituted “appointed actuary” for “qualified actuary”; and made a stylistic change.

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

Editor's notes. —

Section 408 of the Internal Revenue Code, referred to in subsections (d) and (e), appears as 26 U.S.C. § 408.

Conflicting legislation. —

§ 26-6-206. Computation of minimum standard for annuities; computation of minimum standard valuation by calendar year of issue.

Except as provided in subsection (b) of this section the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the operative date of this section as defined in subsection (b) of this section, and for annuities and pure endowments purchased on or after that operative date under group annuity and pure endowment contracts, shall be the commissioners’ reserve valuation method defined in W.S. 26-6-205(c), (d) and (e) and the following tables and interest rates:
1. For individual annuity and pure endowment contracts issued:
  1. Prior to May 20, 1981, excluding any disability and accidental death benefits in those contracts, the 1971 individual annuity mortality table, or any modification of this table the commissioner approves, with six percent (6%) interest for single premium immediate annuity contracts and four percent (4%) interest for all other individual annuity and pure endowment contracts;
  2. On or after May 20, 1981, excluding any disability and accidental death benefits in those contracts, the 1971 individual annuity mortality table or any individual annuity mortality table the National Association of Insurance Commissioners adopts after 1980 and is approved by regulation the commissioner promulgates for use in determining the minimum standard of valuation for those contracts, or any modification of these tables the commissioner approves, and seven and one-half percent (7 1/2%) interest for single premium immediate annuity contracts, five and one-half percent (5 1/2%) interest for single premium deferred annuity and pure endowment contracts and four and one-half percent (4 1/2%) interest for all other individual annuity and pure endowment contracts.
2. For annuities and pure endowments purchased:
  1. Prior to May 20, 1981 under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under those contracts, the 1971 group annuity mortality table, or any modification of this table the commissioner approves, and six percent (6%) interest;
  2. On or after May 20, 1981 under group annuity and pure endowment contracts, excluding any disability and accidental death benefits purchased under those contracts, the 1971 group annuity mortality table or any group annuity mortality table the National Association of Insurance Commissioners adopts after 1980 and the commissioner approves for use in determining the minimum standard of valuation for those annuities and pure endowments, or any modification of these tables the commissioner approves, and seven and one-half percent (7 1/2%) interest.
  3. Annuities and pure endowments purchased in a particular calendar year on or after January 1, 1995, under group annuity and pure endowment contracts; and
  4. The net increase, if any, in a particular calendar year after January 1, 1995, in amounts held under guaranteed interest contracts shall be the calendar year statutory valuation interest rates as defined in this subsection.
  5. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, the formula for single premium immediate annuities stated in subparagraph (B) of this paragraph shall apply.
    1. For annuities and guaranteed interest contracts valued on an issue year basis:
      GUARANTEEDURATION YEARS WEIGHTING FACTOR FOR PLAN TYPE A B C 5 or less: .80 .60 .50 More than 5, but not more than 10: .75 .60 .50 More than 10, but not more than 20: .65 .50 .45 More than 20: .45 .35 .35
      
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    2. PLAN TYPE A B C For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in subdivision (I) of this subparagraph increased by: .15 .25 .05
      
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    3. PLAN TYPE A B C For annuities and guaranteed interest contracts valued on an issue year basis (other than those with no cash settlement options) which do not guarantee interest on considerations received more than one (1) year after issue or purchase and for annuities and guaranteed interest contracts valued on a change in fund basis which do not guarantee interest rates on considerations received more than twelve (12) months beyond the valuation date, the factors shown in subdivision (I) of this subparagraph or derived in subdivision (II) of this subparagraph increased by: .05 .05 .05
      
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    4. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the guarantee duration is the number of years for which the contract guarantees interest rates in excess of the calendar year statutory valuation interest rate for life insurance policies with guarantee duration in excess of twenty (20) years. For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the guarantee duration is the number of years from the date of issue or date of purchase to the date annuity benefits are scheduled to commence;
    5. Plan type as used in the tables in this subparagraph is defined as follows:
      Plan Type A: At any time policyholder may withdraw funds only (1) with an adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or (2) without such adjustment but in installments over five (5) years or more, or (3) as an immediate life annuity, or (4) no withdrawal permitted.
      
      Plan Type B: Before expiration of the interest rate guarantee, policyholder may withdraw funds only (1) with an adjustment to reflect changes in interest rates or assets values since receipt of the funds by the insurance company, or (2) without such adjustment but in installments over five (5) years or more, or (3) no withdrawal permitted. At the end of interest rate guarantee, funds may be withdrawn without such adjustment in a single sum or installments over less than five (5) years.
      
      Plan Type C: Policyholder may withdraw funds before expiration of interest rate guarantee in a single sum or installments over less than five (5) years either without adjustment to reflect changes in interest rates or asset values since receipt of the funds by the insurance company, or subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.
    6. A company may elect to value guaranteed interest contracts with cash settlement options and annuities with cash settlement options on either an issue year basis or on a change in fund basis. Guaranteed interest contracts with no cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis. As used in this subsection, an issue year basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration of the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract, and the change in fund basis of valuation refers to a valuation basis under which the interest rate used to determine the minimum valuation standard applicable to each change in the fund held under the annuity or guaranteed interest contract is the calendar year valuation interest rate for the year of the change in the fund.
  6. For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a change in fund basis, except as stated in subparagraph (B) of this paragraph, the average over a period of twelve (12) months, ending on June 30 of the calendar year of the change in the fund, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.
1. The interest rates used in determining the minimum standard for the valuation of: (b) (i) The interest rates used in determining the minimum standard for the valuation of:
(A) Life insurance policies issued in a particular calendar year, on or after the operative date of W.S. 26-16-209 ; (B) Individual annuity and pure endowment contracts issued in a particular calendar year on or after January 1, 1995;
Any insurer may file with the commissioner a written notice of its election to comply with this section after a specified date before January 1, 1979, which is the operative date of this section for that insurer. An insurer may elect a different operative date for individual annuity and pure endowment contracts from that elected for group annuity and pure endowment contracts. If an insurer makes no election, the operative date of this section for that insurer is January 1, 1979.

(ii) The calendar year statutory valuation interest rates, I, shall be determined as follows and the results rounded to the nearer one-fourth percent (1/4%):

(A) For Life Insurance,

I = . 03 + W R1 - .03 + W R2 - .09 ;

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(B) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options;

I = .03 + W R - .03

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Where R1 is the lesser of R and .09 , R2 is the greater of R and .09 , R is the reference interest rate defined in this subsection, and W is the weighting factor defined in this subsection;

(C) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on an issue year basis, except as stated in subparagraph (B) of this paragraph, the formula for life insurance stated in subparagraph (A) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee durations in excess of ten (10) years and the formula for single premium immediate annuities stated in subparagraph (B) of this paragraph shall apply to annuities and guaranteed interest contracts with guarantee duration of ten (10) years or less;

(D) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the formula for single premium immediate annuities stated in subparagraph (B) of this paragraph shall apply;

(iii) However, if the calendar year statutory valuation interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies issued in the immediately preceding calendar year by less than one-half percent (1/2%), the calendar year statutory valuation interest rate for such life insurance policies shall be equal to the corresponding actual rate for the immediately preceding calendar year. For purposes of applying the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year shall be determined for 1980 (using the reference interest rate defined for 1979) and shall be determined for each subsequent calendar year regardless of when W.S. 26-16-209 becomes operative;

(iv) The weighting factors referred to in the formulas stated above are given in the following tables:

(A) Weighting factors for life insurance:

GUARANTEEDURATION() YEARS WEIGHTING FACTORS 10 or less .50 More than 10, but not more than 20 .45 More than 20 .35

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For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original policy;

(B) Weighting factor for single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options:

.80

(C) Weighting factors for other annuities and for guaranteed interest contracts, except as stated in subparagraph (B) of this paragraph, shall be as specified in tables (I), (II) and (III) of this subparagraph, according to the rules and definitions in subdivisions (IV), (V) and (VI) of this subparagraph:

(v) The reference interest rate referred to in paragraphs (ii) and (iii) of this subsection shall be defined as follows:

(A) For life insurance, the lesser of the average over a period of thirty-six (36) months and the average over a period of twelve (12) months, ending on June 30 of the calendar year next preceding the year of issue, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.;

(B) For single premium immediate annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, the average over a period of twelve (12) months, ending on June 30 of the calendar year of issue or year of purchase, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.;

(C) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subparagraph (B) of this paragraph, with guarantee duration in excess of ten (10) years, the lesser of the average over a period of thirty-six (36) months and the average over a period of twelve (12) months, ending on June 30 of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.;

(D) For other annuities with cash settlement options and guaranteed interest contracts with cash settlement options, valued on a year of issue basis, except as stated in subparagraph (B) of this paragraph, with guarantee duration of ten (10) years or less, the average over a period of twelve (12) months, ending on June 30 of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.;

(E) For other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the average over a period of twelve (12) months, ending on June 30 of the calendar year of issue or purchase, of the monthly average of the composite yield on seasoned corporate bonds, as published by Moody’s Investors Service, Inc.;

(vi) If the monthly average of the composite yield on seasoned corporate bonds is no longer published by Moody’s Investor’s Service, Inc., or if the National Association of Insurance Commissioners determines that the monthly average of the composite yield on seasoned corporate bonds as published by Moody’s Investors Service, Inc. is no longer appropriate for the determination of the reference interest rate, then an alternative method for determination of the reference interest rate, which is adopted by the National Association of Insurance Commissioners and approved by regulation promulgated by the commissioner, may be substituted.

The 2017 amendment, in the introductory language of (a), substituted “standard of valuation for individual” for “standard for the valuation of all individual”; in (a)(ii), deleted “all” preceding “annuities”; deleted “All” at the beginning of (b)(i)(A) through (b)(i)(C); and in in (b)(v)(A), deleted “all” preceding “life insurance.”

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-207. Minimum standards for accident and health insurance contracts including disability plans.

The commissioner shall promulgate regulations containing the minimum standards applicable to the valuation of accident and health contracts, including disability plans, issued prior to the operative date of the valuation manual. For accident and health insurance contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under W.S. 26-6-202(e).

History. Laws 1994, ch. 76, § 1; 2017 ch. 67, § 2, effective March 1, 2017.

The 2017 amendment, rewrote the first sentence and added the second sentence.

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-208. Actuarial opinion of reserves.

through (f) Repealed by Laws 2017, ch. 67, § 3.
Actuarial opinions issued prior to the operative date of the valuation manual shall be governed by the following provisions:
1. Every life insurer doing business in this state shall annually submit the opinion of a qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation are computed appropriately, are based on assumptions which satisfy contractual provisions, are consistent with prior reported amounts and comply with applicable laws of this state. The commissioner by regulation shall define the specifics of this opinion and add any other items deemed to be necessary to its scope;
2. Every life insurer, except as exempted by regulation, shall also annually include in the opinion required by paragraph (i) of this subsection, an opinion of the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by regulation, when considered in light of the assets held by the insurer with respect to the reserves and related actuarial items, including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer’s obligations under the policies and contracts including the benefits under and expenses associated with the policies and contracts. The commissioner may provide by regulation for a transition period for establishing any higher reserves which the qualified actuary deems necessary in order to render the opinion required by this section;
3. Each opinion required by paragraph (ii) of this subsection shall be governed by the following provisions:
  1. A memorandum, in form and substance acceptable to the commissioner as specified by regulation, shall be prepared to support each actuarial opinion;
  2. If the insurer fails to provide a supporting memorandum at the request of the commissioner within a period specified by regulation or the commissioner determines that the supporting memorandum provided by the insurer fails to meet the standards prescribed by regulation or is unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the insurer to review the opinion and the basis for the opinion and prepare any supporting memorandum required by the commissioner.
4. Every opinion required by this subsection shall be governed by the following provisions:
  1. The opinion shall be submitted with the annual statement reflecting the valuation of reserve liabilities for each year ending on or after December 31, 1995;
  2. The opinion shall apply to all business in force including individual and group health insurance plans, in form and substance acceptable to the commissioner as specified by regulation;
  3. The opinion shall be based on standards adopted by the actuarial standards board and on additional standards as the commissioner by regulation prescribes;
  4. In the case of an opinion required to be submitted by a foreign or alien insurer, the commissioner may accept the opinion filed by that insurer with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to an insurer domiciled in this state;
  5. Except in cases of fraud, willful misconduct or negligence the qualified actuary shall not be liable for damages to any person, other than the insurer and the commissioner, for any act, error, omission, decision or conduct with respect to the actuary’s opinion;
  6. Disciplinary action by the commissioner against the insurer or the qualified actuary shall be in accordance with W.S. 26-1-107 ;
  7. Any memorandum in support of the opinion, and any other material provided by the insurer to the commissioner in connection with the opinion, shall be kept confidential by the commissioner, may be shared as authorized by and in accordance with the provisions of W.S. 26-2-113(d), and shall not be made public other than for the purpose of defending an action seeking damages from any person by reason of any action required by this section or by regulations promulgated under this section. Once any portion of the confidential memorandum is cited by the insurer in its marketing or is cited before any governmental agency other than a state insurance department or is released by the insurer to the news media, no portion of the memorandum shall be confidential. The memorandum or other material may otherwise be released by the commissioner:
    1. With the written consent of the insurer; or
    2. To the American Academy of Actuaries upon request stating that the memorandum or other material is required for the purpose of professional disciplinary proceedings and setting forth procedures satisfactory to the commissioner for preserving the confidentiality of the memorandum or other material.
5. For the purposes of this subsection, “qualified actuary” means a member in good standing of the American Academy of Actuaries and who meets requirements prescribed by regulation of the commissioner.
Actuarial opinions of reserves issued after the operative date of the valuation manual shall be governed by the following provisions:
1. Every insurer with outstanding life insurance contracts, accident and health insurance contracts or deposit type contracts in this state and subject to regulation by the commissioner shall annually submit the opinion of the appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts are computed appropriately, based on assumptions that satisfy contractual provisions, consistent with prior reported amounts and comply with applicable laws of this state;
2. Every insurer with outstanding life insurance contracts, accident and health insurance contracts or deposit type contracts in this state and subject to regulation by the commissioner, except as exempted in the valuation manual, shall also annually include in the opinion required by paragraph (i) of this subsection, an opinion of the same appointed actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified in the valuation manual, when considered in light of the assets held by the insurer with respect to the reserves and related actuarial items including the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, make adequate provision for the insurer’s obligations under the policies and contracts including the benefits under and expenses associated with the policies and contracts;
3. Each opinion required by paragraph (ii) of this subsection shall be governed by the following provisions:
  1. A memorandum, in form and substance as specified in the valuation manual and acceptable to the commissioner, shall be prepared to support each actuarial opinion;
  2. If the insurer fails to provide a supporting memorandum at the request of the commissioner within a period specified in the valuation manual or the commissioner determines that the supporting memorandum provided by the insurer fails to meet the standards prescribed by the valuation manual or is otherwise unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the insurer to review the opinion and the basis for the opinion and prepare the supporting memorandum required by the commissioner.
4. Every opinion required by this subsection shall be governed by the following provisions:
  1. The opinion shall be in form and substance as specified in the valuation manual and acceptable to the commissioner;
  2. The opinion shall be submitted with the annual statement reflecting the valuation of such reserve liabilities for each year ending on or after the operative date of the valuation manual;
  3. The opinion shall apply to all policies and contracts subject to paragraph (ii) of this subsection, plus other actuarial liabilities as may be specified in the valuation manual;
  4. The opinion shall be based on standards adopted by the actuarial standards board or its successor, and on any additional standards as may be prescribed in the valuation manual;
  5. In the case of an opinion required to be submitted by a foreign or alien insurer, the commissioner may accept the opinion filed by that insurer with the insurance supervisory official of another state if the commissioner determines that the opinion reasonably meets the requirements applicable to an insurer domiciled in this state;
  6. Except in cases of fraud or willful misconduct, the appointed actuary shall not be liable for damages to any person, other than the insurer and the commissioner, for any act, error, omission, decision or conduct with respect to the appointed actuary’s opinion;
  7. Disciplinary action by the commissioner against the insurer or the appointed actuary shall be in accordance with W.S. 26-1-107 .

History. Laws 1994, ch. 76, § 1; 2001, ch. 9, § 1; 2004, ch. 14, § 2; 2017 ch. 67, §§ 2, 3, effective March 1, 2017.

The 2004 amendment, effective July 1, 2004, in (c), inserted the language beginning “when considered in light of the assets” and ending “retained under the policies and contracts.”

The 2017 amendments. — The first 2017 amendment, by ch. 67, § 2, added (g) and (h).

The second 2017 amendment, by ch. 67, § 3, repealed former (a) through (f).

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by Art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-209. Valuation manual for policies and contracts; amendments to manual; rules on minimum valuation standards; actuarial examinations.

For policies or contracts issued on or after the operative date of the valuation manual, the standard prescribed in the valuation manual is the minimum standard of valuation required under W.S. 26-6-202(e), except as provided under subsection (e) or (g) of this section.
The operative date of the valuation manual is January 1, 2017.
Unless an amendment in the valuation manual specifies a later effective date, amendments to the valuation manual shall be effective on January 1 following the date when all of the following have occurred:
1. The change to the valuation manual has been adopted by the NAIC by an affirmative vote representing:
  1. At least three-fourths (3/4) of the members of the NAIC voting, but not less than a majority of the total membership; and
  2. Members of the NAIC representing jurisdictions totaling greater than seventy-five percent (75%) of the direct premiums written as reported in the following annual statements most recently available prior to the vote in subparagraph (A) of this paragraph:
    1. Life, accident and health annual statements;
    2. Health annual statements; or
    3. Fraternal annual statements.
The valuation manual shall specify all of the following:
1. Minimum valuation standards for and definitions of the policies or contracts subject to W.S. 26-6-202(e). The minimum valuation standards shall be:
  1. The commissioner’s reserve valuation method for life insurance contracts, other than annuity contracts, subject to W.S. 26-6-202(e);
  2. The commissioner’s reserve valuation method for annuity contracts subject to W.S. 26-6-202(e); and
  3. Minimum reserves for all other policies or contracts subject to W.S. 26-6-202(e).
2. Which policies or contracts or types thereof are subject to the requirements of a principle based valuation under W.S. 26-6-210 (a) and the minimum valuation standards consistent with those requirements;
3. For policies and contracts subject to a principle based valuation under W.S. 26-6-210 :
  1. Requirements for the format of reports to the commissioner under W.S. 26-6-210(b)(iii), which shall include information necessary to determine if the valuation is appropriate and in compliance with this article;
  2. Assumptions for risks over which the insurer does not have significant control or influence;
  3. Procedures for corporate governance and actuarial function oversight and a process for appropriate waiver or modification of the procedures.
4. For policies and contracts not subject to a principle based valuation under W.S. 26-6-210, the minimum valuation standard shall either:
  1. Be consistent with the minimum standard of valuation prior to the operative date of the valuation manual; or
  2. Require reserves that quantify the benefits, guarantees, funding and risks associated with the policies or contracts at a level of conservatism that reflects conditions including unfavorable events with a reasonable probability of occurring.
5. The experience data required under W.S. 26-6-211 including reporting and any data analysis requirements; and
6. Any other requirement including those relating to reserve methods, models for measuring risk, generation of economic scenarios, assumptions, margins, use of company experience, risk measurement, disclosure, certifications, reports, actuarial opinions and memoranda, transition rules and internal controls.
In the absence of a specific valuation requirement or if a specific valuation requirement in the valuation manual is not in the commissioner’s opinion in compliance with this article, the insurer shall comply with minimum valuation standards prescribed by the commissioner by rule or regulation.
The commissioner may, at the expense of the insurer, engage, employ or contract a qualified actuary to perform an actuarial examination of the insurer and opine on the appropriateness of any reserve assumption or method used by the insurer, or to review and opine on an insurer’s compliance with any requirement set forth in this article. The commissioner may rely upon the opinion of a qualified actuary engaged by the commissioner of another state, district or territory of the United States regarding provisions contained within this article.
The commissioner may require an insurer to change any assumption or method that in the commissioner’s opinion is necessary to comply with the requirements of the valuation manual or this article. An insurer shall adjust the reserves as required by the commissioner. The commissioner may take other disciplinary action as permitted pursuant to W.S. 26-1-107 .

History. 2017 ch. 67, § 1, effective March 1, 2017.

Effective date. —

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-210. Principle based valuation; requirements.

An insurer shall establish reserves using a principle based valuation that meets all of the following conditions for policies or contracts issued on or after the operative date of the valuation manual as specified in the valuation manual:
1. Quantifies the benefits, guarantees, funding and risks associated with the policies or contracts at a level of conservatism that reflects conditions including unfavorable events with a reasonable probability of occurring during the lifetime of the contracts. For policies or contracts with significant tail risk, reflects conditions appropriately adverse to quantify the tail risk;
2. Incorporates assumptions, risk analysis methods and financial models and management techniques that are consistent with those utilized within the insurer’s overall risk assessment process, while recognizing potential differences in financial reporting structures and any prescribed assumptions or methods;
3. Incorporates assumptions derived in one (1) of the following manners:
  1. Assumptions prescribed in the valuation manual;
  2. For assumptions not prescribed in the valuation manual, assumptions that:
    1. Use the insurer’s available experience, to the extent it is relevant and statistically credible; or
    2. To the extent that company data on experience is not available, relevant or statistically credible, use other relevant, statistically credible experience.
4. Provides margins for uncertainty including adverse deviation and estimation error such that the greater the uncertainty the greater the margin and resulting reserve.
An insurer using a principle based valuation for one (1) or more policies or contracts subject to this section as specified in the valuation manual shall:
1. Establish procedures for corporate governance and oversight of the actuarial valuation function consistent with those described in the valuation manual;
2. Provide to the commissioner and the insurer’s board of directors an annual certification of the effectiveness of the internal controls with respect to the principle based valuation. The controls shall be designed to assure all material risks inherent in the liabilities and associated assets subject to the valuation are included in the valuation and valuations are made in accordance with the valuation manual. The certification shall be based on the controls in place as of the end of the preceding calendar year;
3. Develop, and file with the commissioner upon the commissioner’s request, a principle based valuation report that complies with standards prescribed in the valuation manual.
A principle based valuation may include a prescribed formulaic reserve component.

History. 2017 ch. 67, § 1, effective March 1, 2017.

Effective date. —

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-211. Experience data reporting for policies and contracts.

An insurer shall submit mortality, morbidity, policyholder behavior or expense experience and other data as prescribed in the valuation manual.

History. 2017 ch. 67, § 1, effective March 1, 2017.

Effective date. —

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-212. Confidential information; when disclosure is permitted.

Privilege for, and confidentiality of, confidential information is as follows:
1. Except as otherwise provided in this section, an insurer’s confidential information is confidential and privileged and shall not be subject to public inspection, subpoena, discovery or be admissible in evidence in any private civil action. The commissioner may use an insurer’s confidential information in the furtherance of any regulatory or legal action brought against the insurer as part of the commissioner’s official duties;
2. Neither the commissioner nor any person who receives confidential information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning an insurer’s confidential information;
3. In order to assist in the performance of the commissioner’s duties, and provided that a recipient agrees, and has the legal authority to agree to maintain the confidentiality and privileged status of documents, materials, data and other information in the same manner and to the same extent as required for the commissioner, the commissioner may share confidential information with other state, federal and international regulatory agencies or law enforcement officials, with the NAIC and its affiliates and subsidiaries and, in the case of confidential information specified in paragraphs (c)(i) and (iv) of this section only, with the actuarial board for counseling and discipline or its successor upon request stating that the confidential information is required for the purpose of professional disciplinary proceedings and with state, federal and international law enforcement officials;
4. The commissioner may receive documents, materials, data and other information, including otherwise confidential and privileged documents, materials, data or information, from the NAIC and its affiliates and subsidiaries, regulatory or law enforcement officials of other foreign or domestic jurisdictions and the actuarial board for counseling and discipline or its successor. The commissioner shall maintain as confidential or privileged any document, material, data or other information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or other information;
5. The commissioner may enter into agreements governing the sharing and use of information consistent with the provisions of this subsection;
6. No waiver of any applicable privilege or claim of confidentiality in the confidential information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized under paragraph (iii) of this subsection;
7. A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this subsection shall be available and enforced in any proceeding of this state;
8. As used in this section “regulatory agency,” “law enforcement agency” and the “NAIC” include their employees, agents, consultants and contractors.
Notwithstanding subsection (a) of this section, any confidential information specified in paragraphs (c)(i) and (iv) of this section:
1. May be subject to subpoena for the purpose of defending an action seeking damages from the appointed actuary submitting the related memorandum in support of an opinion submitted under W.S. 26-6-208 or principle based valuation report developed under W.S. 26-6-210(b)(iii) by reason of an action required by this article or by rule or regulation promulgated in accordance with this article;
2. May otherwise be released by the commissioner with the written consent of the insurer the confidential information relates to; and
3. Once any portion of a memorandum in support of an opinion submitted under W.S. 26-6-208 or a principle based valuation report developed under W.S. 26-6-210(b)(iii) is cited by the insurer in its marketing or is publicly volunteered to or before a governmental agency other than a state insurance department or is released by the insurer to the news media, all portions of the memorandum or report shall no longer be privileged or confidential.
For purposes of this section, “confidential information” means:
1. A memorandum in support of an opinion submitted under W.S. 26-6-208 and any other documents, materials and other information including all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in connection with the memorandum;
2. Except as otherwise provided in this paragraph, all documents, materials, digital or electronic documents and other information including all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made under W.S. 26-6-209(f). If an examination report or other material prepared in connection with an examination made under W.S. 26-2-116 is not held as private and confidential information under W.S. 26-2-116 , an examination report or other material prepared in connection with an examination made under W.S. 26-6-209(f) shall not be confidential information to the same extent as if the examination report or other material had been prepared under W.S. 26-2-116;
3. Any reports, documents, materials and other information developed by an insurer in support of, or in connection with, an annual certification by the insurer under W.S. 26-6-210(b)(ii) and any reports, documents, materials, digital or electronic documents and other information including all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in connection with the reports, documents, materials and other information;
4. Any principle based valuation report developed under W.S. 26-6-210(b)(iii) and any other documents, materials, digital or electronic documents and other information including all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in connection with the report; and
5. Any experience data submitted by an insurer under W.S. 26-6-211 and any reports, documents, materials, data, digital or electronic documents and other information including all working papers, and copies thereof, created or produced in connection with the experience data that include any potentially insurer identifying or personally identifiable information, that is provided to or obtained by the commissioner. This includes any reports, documents, materials, data, digital or electronic documents and other information including all working papers, and copies thereof, created, produced or obtained by or disclosed to the commissioner or any other person in connection with the experience data or any other report, document, material, datum, digital or electronic documents or other information referred to in this paragraph.

History. 2017 ch. 67, § 1, effective March 1, 2017.

Effective date. —

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 1, 2017.

§ 26-6-213. Single state exemption.

The commissioner may exempt specific product forms or product lines of a domestic insurer that is licensed and doing business only in Wyoming from the requirements of W.S. 26-6-209 , provided that:
1. The commissioner has issued an exemption in writing to the insurer and has not subsequently revoked the exemption in writing; and
2. The insurer computes reserves using assumptions and methods used prior to the operative date of the valuation manual in addition to any requirements established by rule and regulation of the commissioner.
For any insurer granted an exemption under this section, W.S. 26-6-203 and 26-6-205 through 26-6-208 shall be applicable. With respect to any insurer applying the exemption granted under this section, any reference to W.S. 26-6-209 found in W.S. 26-6-203 and 26-6-205 through 26-6-208 shall not be applicable.

History. 2017 ch. 67, § 1, effective March 1, 2017.

Effective date. —

Laws 2017, ch. 67, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 1, 2017.

Article 3. Valuation of Other Securities

§ 26-6-301. Valuation of bonds and other debt securities.

The commissioner may, by rule or regulation, require that any bond or other evidence of debt held by an insurer be valued in accordance with the most recent published valuation standards of the National Association of Insurance Commissioners. Any bonds or other evidences of debt as to which the National Association of Insurance Commissioners has not published valuation standards in its valuations of securities manual, if amply secured and not in default as to principal or interest, shall be valued as follows:
1. If purchased at par, at the par value;
2. If purchased above or below par, on the basis of the purchase price adjusted so as to bring the value to par at maturity and so as to yield in the meantime the effective rate of interest at which the purchase was made, or instead of this method, according to an accepted method of valuation the commissioner approves;
3. Purchase price shall in no case be taken at a higher figure than the actual fair value at the time of acquisition regardless of how acquired, plus actual brokerage, transfer, postage or express charges paid in the acquisition of the securities;
4. Unless otherwise provided by valuation the commissioner establishes or approves, no such security shall be carried at above the call price for the entire issue during any period within which the security may be called.
The commissioner has full discretion in determining the method of calculating values according to the rules set forth in this section.

History. Laws 1921, ch. 142, § 12; R.S. 1931, § 57-212; C.S. 1945, § 52-312; W.S. 1957, §§ 26-72, 26.1-105; Laws 1967, ch. 136, § 105; 1977, ch. 78, § 1; W.S. 1977, § 26-6-112; Laws 1983, ch. 190, § 1; 1992, ch. 59, § 2; 2001, ch. 9, § 1.

§ 26-6-302. Valuation of other securities.

The commissioner may, by rule or regulation, require that securities other than securities referred to in W.S. 26-6-301 and except as provided in W.S. 26-16-502(a)(iv), held by an insurer, be valued in accordance with the most recent published valuation standards of the National Association of Insurance Commissioners. At the commissioner’s discretion, securities as to which the National Association of Insurance Commissioners has not published valuation standards shall be valued at their fair value, or at their appraised value or at prices the commissioner determines as representing their fair value.
Preferred or guaranteed stocks or shares while paying full dividends may be carried at a fixed value instead of fair value at the commissioner’s discretion and in accordance with a method of computation he approves.
The stock of an insurer’s subsidiary shall be valued on the basis of the value of only those assets of the subsidiary as would constitute lawful investments of the insurer if acquired or held directly by the insurer.

History. Laws 1967, ch. 136, § 106; W.S. 1957, § 26.1-106; Laws 1973, ch. 181, § 1; W.S. 1977, § 26-6-113; Laws 1983, ch. 190, § 1; 1992, ch. 59, § 2; 2001, ch. 9, § 1.

§ 26-6-303. Valuation of real and personal property.

All real property shall be valued as set forth in the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual.
1. through (iii) Repealed by Laws 1994, ch. 76, § 3.
2. and (v) Repealed by Laws 2001, ch. 9, § 2.
Repealed by Laws 1994, ch. 76, § 3.
Personal property acquired pursuant to loans on the security of chattels made in accordance with W.S. 26-7-111 shall not be valued at an amount greater than the unpaid balance of principal on the defaulted loan at the date of acquisition together with taxes and expenses incurred in connection with the acquisition, or the fair value of the property, whichever is less.

History. Laws 1967, ch. 136, § 107; W.S. 1957, § 26.1-107; W.S. 1977, § 26-6-114; Laws 1983, ch. 190, § 1; 1994, ch. 76, §§ 2, 3; 2001, ch. 9, §§ 1, 2.

§ 26-6-304. Valuation of purchase money mortgages.

Purchase money mortgages on real property shall be valued in accordance with the most recent National Association of Insurance Commissioners’ accounting practices and procedures manual.

History. Laws 1967, ch. 136, § 108; W.S. 1957, § 26.1-108; W.S. 1977, § 26-6-115; Laws 1983, ch. 190, § 1; 2001, ch. 9, § 1.

§ 26-6-305. “Insolvency” and “impairment” defined.

An insurer is insolvent if its total assets, as in this chapter provided, are less than its total liabilities, excluding as a liability, as to a stock insurer, the aggregate par value of its outstanding capital stock.
An insurer is impaired if:
1. As to a stock insurer, the sum of its assets is less than the sum of:
  1. Its liabilities;
  2. The aggregate par value of its outstanding capital stock; and
  3. The amount of surplus the insurer is required to maintain for the kinds of insurance transacted.
2. As to a mutual or reciprocal insurer, the sum of its assets is less than the sum of its liabilities and the amount of surplus the insurer is required to maintain for the kinds of insurance transacted.

History. Laws 1967, ch. 136, § 109; W.S. 1957, § 26.1-109; W.S. 1977, § 26-6-116; Laws 1983, ch. 190, § 1.

Cross references. —

For another definition of “impairment” and “insolvency,” see § 26-28-101 .

As to rehabilitation and liquidation of insurance companies, see §§ 26-28-101 through 26-28-131 .

Article 4. Property and Casualty Actuarial Opinions

Effective dates. —

Laws 2007, ch. 44, § 4, makes the act generally effective July 1, 2007.

§ 26-6-401. Short title; effective date.

This article shall be known as the property and casualty actuarial opinion law. W.S. 26-6-402 and 26-6-403 shall be effective beginning January 1, 2008 and shall be applicable to filings submitted after January 1, 2009.

History. Laws 2007, ch. 44, § 1.

§ 26-6-402. Actuarial opinion of reserves and supporting documentation.

Every property and casualty insurance company doing business in this state, unless otherwise exempted by the domiciliary commissioner, shall annually submit the opinion of an appointed actuary entitled “statement of actuarial opinion.” This opinion shall be filed in accordance with the appropriate National Association of Insurance Commissioners property and casualty annual statement instructions.
Every property and casualty insurance company domiciled in this state that is required to submit a statement of actuarial opinion shall annually submit an actuarial opinion summary, written by the company’s appointed actuary. This actuarial opinion summary shall be filed in accordance with the appropriate National Association of Insurance Commissioners property and casualty annual statement instructions and shall be considered as a document supporting the actuarial opinion required in subsection (a) of this section. A company licensed but not domiciled in this state shall provide the actuarial opinion summary upon request.
An actuarial report and underlying workpapers as required by the appropriate National Association of Insurance Commissioners property and casualty annual statement instructions shall be prepared to support each actuarial opinion required under this article. If the insurance company fails to provide a supporting actuarial report or workpapers at the request of the commissioner or the commissioner determines that the supporting actuarial report or workpapers provided by the insurance company is otherwise unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the company to review the opinion and the basis for the opinion and prepare the supporting actuarial report or workpapers.
The appointed actuary shall not be liable for damages to any person, other than the insurance company and the commissioner, for any act, error, omission, decision or conduct with respect to the actuary’s opinion, except in cases of fraud or willful misconduct on the part of the appointed actuary.

History. Laws 2007, ch. 44, § 1.

Effective dates. —

Pursuant to § 26-6-401 , this section is effective beginning January 1, 2008 and shall be applicable to filings submitted after January 1, 2009.

§ 26-6-403. Confidentiality.

The statement of actuarial opinion required under W.S. 26-6-402 shall be provided with the annual statement in accordance with National Association of Insurance Commissioners property and casualty annual statement instructions and shall be treated as a public document.
Documents, materials or other information in the possession or control of the department that are considered an actuarial report, workpapers or actuarial opinion summary provided in support of the opinion, and any other material provided by the company to the commissioner in connection with the actuarial report, workpapers or actuarial opinion summary, shall be confidential by law and privileged, shall not be subject to inspection under W.S. 16-4-201 through 16-4-205 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. This provision shall not be construed to limit the commissioner’s authority to release the documents to the actuarial board for counseling and discipline established by the American academy of actuaries so long as the material is required for the purpose of professional disciplinary proceedings and that the actuarial board for counseling and discipline establishes procedures satisfactory to the commissioner for preserving the confidentiality of the documents. Nor shall this section be construed to limit the commissioner’s authority to use the documents, materials or other information in furtherance of any regulatory or legal action brought as part of the commissioner’s official duties.
Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials or information subject to subsection (b) of this section.
In order to assist in the performance of the commissioner’s duties, the commissioner may:
1. Share documents, materials or other information, including the confidential and privileged documents, materials or information subject to subsection (b) of this section with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners and its affiliates and subsidiaries, and with state, federal and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material or other information and has the legal authority to maintain confidentiality;
2. Receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries, and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
3. Enter into agreements governing sharing and use of information consistent with this section.
No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (d) of this section.

History. Laws 2007, ch. 44, § 1.

Effective dates. —

Pursuant to § 26-6-4011, this section is effective beginning January 1, 2008 and shall be applicable to filings submitted after January 1, 2009.

Chapter 7 Investments

Cross references. —

As to valuation of securities, see §§ 26-6-201 through 26-6-206 , 26-6-301 and 26-6-302 .

As to approval of investment of funds received from prepaid or prearranged funeral contracts, see § 26-32-101 .

§ 26-7-101. Scopeof chapter.

Except as to W.S. 26-7-116 , this chapter applies to domestic insurers only.

History. Laws 1967, ch. 136, § 110; W.S. 1957, § 26.1-110; Laws 1973, ch. 181, § 1; 1983, ch. 190, § 1; 2004, ch. 130, § 1.

The 2004 amendment substituted “W.S. 26-7-116 ” for “W.S. 26-7-117.”

Laws 2004, ch. 130, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 19, 2004.

Conflicting legislation. —

§ 26-7-102. Definitions of terms used in chapter; determination of net earnings.

As used in this chapter:
1. “Fixed charges” means interest on funded and unfunded debt amortization of debt discount and rentals for leased properties;
2. “Institution” means corporations, joint-stock associations and business trusts;
3. “Net earnings available for fixed charges” means net income after deducting operating and maintenance expenses, taxes, other than federal and state income taxes, depreciation and depletion, but excluding extraordinary nonrecurring items of income or expense appearing in the regular financial statements of the institutions involved;
4. “Obligations” means bonds, debentures, notes or other evidences of indebtedness.
If net earnings are determined in reliance upon consolidated earnings statements of parent and subsidiary institutions, those net earnings shall be determined after provision for income taxes of subsidiaries and after proper allowance for minority stock interest if any. The required coverage of fixed charges shall be computed on a basis including fixed charges and preferred dividends of subsidiaries other than those payable by the subsidiaries to the parent corporation or to any other of the subsidiaries, except that if the minority common stock interest in the subsidiary corporation is substantial, the fixed charges and preferred dividends may be apportioned in accordance with regulations the commissioner prescribes.

History. Laws 1967, ch. 136, § 118; W.S. 1957, § 26.1-118; W.S. 1977, § 26-7-109 ; Laws 1983, ch. 190, § 1.

§ 26-7-103. Eligible investments.

Insurers shall invest in or lend their funds on the security of and shall hold as invested assets only eligible investments prescribed in this chapter.
Any particular investment held by an insurer on January 1, 1968, which was a legal investment at the time it was made, and which the insurer was legally entitled to possess immediately prior to that date, is an eligible investment.
Eligibility of an investment is determined as of the date of its making or acquisition, except as stated in subsection (b) of this section.
Any investment limitation based upon the amount of the insurer’s assets or particular funds relates to those assets or funds as shown by the insurer’s annual statement as of December 31 immediately preceding the date of the insurer’s acquisition of the investment, or as shown by a current financial statement resulting from merger of another insurer, bulk reinsurance or change in capitalization.
An insurer authorized to transact insurance in a foreign country may make investments, in aggregate amount not exceeding its deposit and reserve obligations incurred in that country, in securities of or in that country possessing characteristics and of a quality similar to like investments in the United States.

History. Laws 1877, p. 57, § 6; R.S. 1877, § 608; R.S. 1899, § 3160; C.S. 1910, § 4106; Laws 1917, ch. 92, § 2; 1919, ch. 136, § 1; C.S. 1920, § 5248; R.S. 1931, § 57-406; C.S. 1945, § 52-1006; Laws 1957, ch. 105, § 1; W.S. 1957, §§ 26-23, 26.1-111; Laws 1959, ch. 191, § 1; 1963, ch. 171, § 1; 1967, ch. 136, § 111; W.S. 1977, § 26-7-102 ; Laws 1983, ch. 190, § 1.

§ 26-7-104. General qualifications for investments.

No security or investment, other than property acquired under W.S. 26-7-107(a)(xiii), is eligible for acquisition unless it is interest bearing or interest accruing or dividend or income paying, is not then in default and the insurer is entitled to receive for its exclusive account and benefit the interest or income accruing thereon. Any stock or digital security as defined by W.S. 34-29-101(a)(iii) which has the ability to appreciate in value shall be considered to be income paying for purposes of this subsection.
No security or investment is eligible for purchase at a price above its market value.
Nothing in this chapter prohibits an insurer from acquiring other or additional securities or property if received as a dividend or as a lawful distribution of assets, or under a lawful and bona fide agreement of bulk reinsurance, merger or consolidation. Any investment so acquired which is not otherwise eligible under this chapter shall be disposed of pursuant to W.S. 26-7-112 if real property, or pursuant to W.S. 26-7-113 if personal property or securities.

History. Laws 1967, ch. 136,§ 112; W.S. 1957, § 26.1-112; W.S. 1977, § 26-7-103 ; Laws 1983, ch. 190, § 1; 2001, ch. 79, § 1; 2020 ch. 67, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, in (a) added “or digital security as defined by W.S. 34-29-101(a)(iii)” following “Any stock.”

§ 26-7-105. Investment authorization; record.

No insurer shall make any investment or loan, other than a policy loan or an annuity contract loan of a life insurer, unless the investment or loan is authorized by the insurer’s board of directors or by a committee authorized by the board and charged with the supervision or making of the investment or loan. The minutes of any such committee shall be recorded and regular reports of the committee shall be submitted to the board of directors.
The insurer shall maintain a full record of each investment, showing, among other pertinent information, the name of any officer, director or principal stockholder of the insurer having any interest in the securities, loan or property constituting the investment, or in the person in whose behalf the investment is made, and the nature of the interest.

History. Laws 1877, p. 58, § 7; 1884, ch. 48, § 3; R.S. 1887, § 609; R.S. 1899, § 3161; C.S. 1910, § 4107; C.S. 1920, § 5249; R.S. 1931, § 57-407; C.S. 1945, § 52-1007; W.S. 1957, §§ 26-24, 26.1-113; Laws 1967, ch. 136, § 113; W.S. 1977, § 26-7-104 ; Laws 1983, ch. 190, § 1.

§ 26-7-106. Diversification of and limits on investments.

An insurer shall invest in or hold as admitted assets only categories of investments within applicable limits as follows:
1. No insurer shall have at any time any combination of investments in or loans upon the security of the obligations, property or securities of any one (1) person, institution, corporation or municipal corporation aggregating an amount exceeding five percent (5%) of the insurer’s assets, except this does not apply to general obligations of the United States of America or of any state or include policy loans made under W.S. 26-7-108 ;
2. No insurer shall invest in or hold at any time more than ten percent (10%) of the outstanding voting stock of any corporation, except with respect to voting rights of preference stock during default of dividends, except this does not apply to stock of an insurer’s subsidiary acquired under W.S. 26-7-107(a)(vii) or (xiv), or to controlling stock of an insurer acquired under W.S. 26-7-107(a)(vi);
3. An insurer, other than a title insurer, shall invest and maintain invested funds not less in amount than the minimum paid-in capital stock required under this code [title 26] of a domestic stock insurer transacting like kinds of insurance, only in cash and the securities provided under W.S. 26-7-107(a)(i) and 26-7-107(a)(xii);
4. A life insurer shall also invest and keep invested its funds, in an amount not less than the reserves under its life insurance policies and annuity contracts in force, in cash or the securities or investments allowed under this chapter, other than in common stocks, insurance stocks and stocks of the insurer’s subsidiaries;
5. No life insurer shall invest and have invested at any time in aggregate amount more than seven percent (7%) of its assets in all stocks under W.S. 26-7-107(a)(iv), (v), (vi) and (viii), except this does not apply to stock of a controlled or subsidiary corporation under W.S. 26-7-107(a)(vi), (vii) and (xiv);
6. No insurer shall have invested at any time more than sixty-five percent (65%) of its assets in obligations secured by mortgage, trust deed, contract of purchase or other similar encumbrance of real property;
7. No insurer shall have invested at any time more than seven percent (7%) of its assets in either improvement district obligations or equipment trust certificates;
8. Investments in real property are limited as provided in W.S. 26-7-107(a)(xiii); and
9. Other specific limits apply as stated in the sections dealing with other kinds of investments.

History. Laws 1877, p. 57, § 6; R.S. 1877, § 608; R.S. 1899, § 3160; C.S. 1910, § 4106; Laws 1917, ch. 92, § 2; 1919, ch. 136, § 1; C.S. 1920, § 5248; R.S. 1931, § 57-406; C.S. 1945, § 52-1006; Laws 1957, ch. 105, § 1; W.S. 1957, §§ 26-23, 26.1-114; Laws 1959, ch. 191, § 1; 1963, ch. 171, § 1; 1967, ch. 136, § 114; 1973, ch. 181, § 1; W.S. 1977, § 26-7-105 ; Laws 1983, ch. 190, § 1; 1987, ch. 68, § 1; 1994, ch. 76, § 2.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-7-107. Authorized investments.

An insurer may invest in:
1. Bonds or other evidences of indebtedness, not in default as to principal or interest, which are valid and legally authorized obligations issued, assumed or guaranteed by the United States or Canada or by any state, territory, possession or province thereof, or by any county, city, town, village, municipality or other political subdivision or public instrumentality of one (1) or more of the governmental units specified, if, by statutory or other legal requirements applicable thereto, the obligations are payable as to both principal and interest from:
  1. Taxes levied or required to be levied upon all taxable property or all taxable income within the jurisdiction of the governmental unit; or
  2. Adequate special revenues pledged or otherwise appropriated or by law required to be provided for that payment, but not including any obligation payable solely out of special assessments on properties benefited by local improvements unless adequate security is evidenced by the ratio of assessment to the value of the property or the obligation is additionally secured by an adequate guaranty fund required by law.
2. The obligations and stock if stated, issued, assumed or guaranteed by the following agencies of the United States government, or in which that government is a participant, whether or not it guarantees the obligations:
  1. Commodity credit corporation;
  2. Federal intermediate credit banks;
  3. Federal land banks;
  4. Banks for cooperatives;
  5. Federal home loan banks, and stock thereof;
  6. Federal national mortgage association and stock thereof when acquired in connection with sale of mortgage loans to the association;
  7. International bank for reconstruction and development;
  8. Inter-American development bank;
  9. Any other similar agency of, or participated in by, the United States government and of similar financial quality.
3. Obligations other than those eligible for investment under W.S. 26-7-107(a)(xii) if they are issued, assumed or guaranteed by any solvent institution created or existing under the laws of the United States or Canada or of any state, district, territory or province thereof, and are qualified under any of the following:
  1. Obligations which are secured by adequate collateral security and bear fixed interest if during each of any three (3), including the last two (2), of the five (5) fiscal years immediately preceding the date of the insurer’s acquisition, the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges, as defined in W.S. 26-7-102 , have been not less than one and one-fourth (1 1/4) times the total of its fixed charges for that year. In determining the adequacy of collateral security not more than one-third (1/3) of the total value of the required collateral shall consist of stock other than stock meeting the requirements of W.S. 26-7-107(a)(iv);
  2. Fixed interest-bearing obligations, other than those described in subparagraph (a)(iii)(A) of this section, if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of five (5) fiscal years immediately preceding the date of the insurer’s acquisition have averaged per year not less than one and one-half (1 1/2) times its average annual fixed charges applicable to that period and if during the last year of that period the net earnings have been not less than one and one-half (1 1/2) times its fixed charges for that year;
  3. Adjustment, income or other contingent interest obligations if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of five (5) fiscal years immediately preceding the date of the insurer’s acquisition have averaged per year not less than one and one-half (1 1/2) times the sum of its average annual fixed charges and its average annual maximum contingent interest applicable to that period and if during each of the last two (2) years of that period the net earnings have been not less than one and one-half (1 1/2) times the sum of its fixed charges and maximum contingent interest for each year.
4. Preferred or guaranteed stocks or shares of any solvent institution existing under the laws of the United States or of Canada, or of any state or province thereof, if all of the prior obligations and prior preferred stocks, if any, of the institution at the date of the insurer’s acquisition of the investment are eligible as investments under this chapter and if the net earnings of the institution available for its fixed charges during each of the last two (2) years have been, and during each of the last five (5) years have averaged, not less than one and one-half (1 1/2) times the sum of its average annual fixed charges, if any, its average annual maximum contingent interest, if any, and its average annual preferred dividend requirements. For the purposes of this paragraph the computation shall refer to the fiscal years immediately preceding the date of the insurer’s acquisition of the investment, and the term “preferred dividend requirement” means cumulative or noncumulative dividends, whether paid or not;
5. Nonassessable common stocks, other than insurance stocks, of any solvent corporation organized and existing under the laws of the United States or Canada, or of any state or province thereof, if the corporation has had net earnings available for dividends on its stock in each of the five (5) fiscal years immediately preceding the insurer’s investment therein. If the issuing corporation has not been in legal existence for the whole of the five (5) fiscal years but was formed as a consolidation or merger of two (2) or more businesses of which at least one (1) was in operation on a date five (5) years prior to the investment, the test of eligibility of its common stock under this paragraph shall be based upon consolidated pro forma statements of the predecessor or constituent institutions;
6. Stocks of other solvent insurers formed under the laws of this or another state, which stocks meet the applicable requirements of W.S. 26-7-107(a)(iv) and 26-7-107(a)(v). With the commissioner’s advance written consent an insurer may acquire and hold the controlling interest in the outstanding voting stock of another stock insurer formed under the laws of this or another state, which stocks are limited as to amount as provided in W.S. 26-7-107(a)(vii). The commissioner shall not give his consent to any such acquisition if he finds it is not in the best interests of the insurers involved or of their policyholders or stockholders, or that the acquisition would materially tend to result in any monopoly in the insurance business;
7. Stock of a subsidiary insurance corporation it forms. All of the insurer’s investments under this paragraph, together with its investments in insurance stocks under W.S. 26-7-107(a)(vi), shall not at any time exceed the amount of the investing insurer’s surplus, if a life insurer, or its surplus to policyholders if other than a life insurer;
8. A bank’s common trust fund as defined in section 584 of the United States Internal Revenue Code of 1954;
9. The securities of any open-end management type investment company or investment trust registered with the federal securities and exchange commission under the Investment Company Act of 1940 as from time to time amended, if the investment company or trust has assets of not less than twenty-five million dollars ($25,000,000.00) on the date of the insurer’s investment;
10. Equipment trust obligations or certificates adequately secured and evidencing an interest in transportation equipment, wholly or in part within the United States of America, which obligations or certificates carry the right to receive determined portions of rental, purchase or other fixed obligatory payments to be made for the use or purchase of the transportation equipment;
11. Share accounts, savings accounts of savings and loan associations or building and loan associations or in the savings accounts of banks;
12. First liens upon improved real property located in this or any other state or in Canada, subject to the following conditions:
  1. For liens on single family residence property the amount loaned shall not exceed seventy-five percent (75%) of the fair value of the property, and the loan shall be amortized within not more than thirty (30) years by payment of installments thereon at regular intervals not less frequent than every three (3) months;
  2. For liens on other improved real property the amount loaned shall not exceed sixty-six and two-thirds percent (66 2/3%) of the fair value of the property;
  3. No loan shall be made or acquired by the insurer unless the fair value of the property has been determined, for the purposes of the loan, by a qualified independent appraiser;
  4. In applying the limitations provided in subparagraphs (A) and (B) of this paragraph, the amount in which the loan is guaranteed by the administrator of veteran’s affairs or insured by the federal housing administration or other United States or Canadian government agency may be excluded from the amount of the loan;
  5. Insurance not less comprehensive than fire and extended coverage shall be carried on the improvements on the property in an amount not less than the insurable value of the improvements, or the amount of the loan, whichever is less, and the policy evidencing the insurance endorsed to show the interest of the mortgagee. “Improved real property” means all farm lands used for tillage, crop, other than timber, or pasture, and all real property on which permanent improvements, installations or structures suitable for residence or construction of residences, or for commercial or industrial use, are situated;
  6. Subparagraphs (A), (B) and (C) of this paragraph do not apply to purchase money mortgages taken by the insurer upon sale of property theretofore owned by it and covering the real property. No such mortgage shall be for an amount exceeding the original unpaid balance of the purchase price.
13. Real property as follows:
  1. The land and the buildings thereon occupied by it as its principal office and any other real property necessary in the transaction of its business, provided the amount so invested and apportioned as to space actually so occupied shall not aggregate more than fifteen percent (15%) of the insurer’s assets;
  2. Acquired in satisfaction of loans, mortgages, liens, judgments, decrees or debts previously owing to the insurer in the course of its business;
  3. Acquired in part payment of the consideration of the sale of other real property it owns, if the transaction effects a net reduction in the insurer’s investments in real property;
  4. Acquired by gift or devise or through merger, consolidation or bulk reinsurance of another insurer under this code;
  5. The seller’s interest in real property subject to an agreement of purchase or sale, but the sum invested in the seller’s interest shall not exceed two-thirds (2/3) of the fair value of the property;
  6. Improved real property, or any interest therein acquired or held by purchase, lease or otherwise, other than real property to be used primarily for agricultural, ranch, mining, development of oil or mineral resources, recreational, amusement, hotel, motel or club purposes, acquired as an investment for the production of income or acquired to be improved or developed for such investment purposes pursuant to an existing program therefor. The insurer may hold, improve, develop, maintain, manage, lease, sell and convey real property it acquires under this provision. An insurer shall not have at any time invested in real property under this subparagraph an amount exceeding fifteen percent (15%) of its assets. An investment in any single parcel of real estate acquired under this subparagraph after March 1, 1975, shall not exceed four percent (4%) of the company’s assets;
  7. Additional real property and equipment incident to real property, if necessary or convenient for the purpose of enhancing the sale or other value of real property previously acquired or held under subparagraphs (B), (C), (D) or (F) of this paragraph. The real property and equipment shall be included, together with the real property for the enhancement of which it was acquired, for the purpose of applicable investment limits, and is subject to disposal at the same time and under the same conditions applying to the enhanced real property under W.S. 26-7-112 ;
  8. All real property owned by the insurer under this section, except as to seller’s interest specified in subparagraph (E) of this paragraph, shall not at any time exceed thirty percent (30%) of the insurer’s assets.
14. Common stock, preferred stock, debt obligations, and other securities of one (1) or more subsidiary business corporations formed under the laws of this state and necessary and incidental to the insurer’s insurance business or to the administration of any of its investments. The amount of the investment is governed by W.S. 26-44-102(b);
15. Nonassessable common stocks, other than insurance stocks, of any solvent corporation organized and existing under the laws of any foreign country, any such investment to be subject to the limitations of W.S. 26-7-106 . At any one time, the aggregate amount of foreign investments shall not exceed twenty percent (20%) of the insurer’s admitted assets;
16. Digital assets, as defined by W.S. 34-29-101(a)(i) and excluding digital consumer assets as defined by W.S. 34-29-101(a)(ii), that otherwise comply with all applicable requirements of this chapter for the applicable asset class or for the most analogous asset class.

History. Laws 1947, ch. 121, § 1; W.S. 1957, §§ 26-25, 26.1-115 to 26.1-117, 26.1-119 to 26.1-124, 26.1-127, 26.1-129, 26.1-131; Laws 1967, ch. 136, §§ 115 to 117, 119 to 124, 127, 129, 131; 1975, ch. 181, § 1; W.S. 1977, §§ 26-7-106 to 26-7-108 , 26-7-110 to 26-7-115 , 26-7-118, 26-7-120, 26-7-122; Laws 1979, ch. 82, § 1; 1983, ch. 190, § 1; 1994, ch. 76, § 2; 2001, ch. 79, § 1; 2020 ch. 67, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, added (a)(xvi).

Editor's notes. —

There is no subparagraph (a)(ii)(I) or subsection (b) in this section as it appears in the printed acts.

The term “common trust fund” is defined in 26 U.S.C. § 584(a).

The Investment Company Act of 1940, referred to in subsection (a)(ix), is codified as 15 U.S.C. §§ 80a-1 through 80a-64.

§ 26-7-108. Policy loans.

A life insurer may lend to its policyholder upon pledge of the policy as collateral security any sum not exceeding the cash surrender value of the policy, or may lend against pledge or assignment of any of its supplementary contracts or other contracts or obligations if the loan is adequately secured by the pledge or assignment. Loans so made are eligible investments of the insurer.

History. Laws 1921, ch. 142, § 32; 1931, ch. 15, § 1; R.S. 1931, § 57-232; C.S. 1945, § 52-510; Laws 1947, ch. 11, § 3; 1951, ch. 107, § 1; W.S. 1957, §§ 26-125, 26.1-125; Laws 1959, ch. 68, § 2; 1967, ch. 136, § 125; W.S. 1977, § 26-7-116 ; Laws 1983, ch. 190, § 1.

§ 26-7-109. Collateral loans.

An insurer may lend and thereby invest its funds upon the pledge of securities eligible for investment under this chapter. As of the date made, no such loan shall exceed in amount ninety percent (90%) of the market value of the collateral pledged. The amount loaned shall be included pro rata in determining the maximum percentage of funds permitted under this chapter to be invested in the categories of securities so pledged.

History. Laws 1967, ch. 136, § 126; W.S. 1957, § 26.1-126; W.S. 1977, § 26-7-117; Laws 1983, ch. 190, § 1.

§ 26-7-110. Miscellaneous loans and investments.

An insurer may make loans or investments not otherwise expressly permitted under this chapter, in aggregate amounts not over five percent (5%) of the insurer’s assets and not over one percent (1%) of those assets as to any one loan or investment, if the loan or investment fulfills the requirements of W.S. 26-7-103 and otherwise qualifies as a sound investment. No such loan or investment shall be represented by:
1. Any item excluded under W.S. 26-6-102 or any loan or investment otherwise expressly prohibited;
2. Agents’ balances or amounts advanced to or owing by agents, except as to policy loans, mortgage loans and collateral loans otherwise authorized under this chapter;
3. Any category of loans or investments expressly eligible under any other provisions of this chapter;
4. Any asset theretofore acquired or held by the insurer under any other category of loans or investments eligible under this chapter.
An insurer may make loans to industrial development corporations under the laws of this state in an amount not exceeding the limits set forth in W.S. 17-11-106(b)(iii).
The insurer shall keep a separate record of all loans and investments made under this section.

History. Laws 1967, ch. 136, § 128; W.S. 1957, § 26.1-128; W.S. 1977, § 26-7-119; Laws 1983, ch. 190, § 1; 2001, ch. 9, § 1.

§ 26-7-111. Security interest in chattels.

In connection with a mortgage loan on the security of real property designed and used primarily for residential purposes only, which mortgage loan was acquired pursuant to W.S. 26-7-107(a)(xii), an insurer may lend or invest an amount, not exceeding twenty percent (20%) of the amount loaned on or invested in the real property mortgage, on the security of chattels, to be amortized by regular payments within a term of not more than five (5) years, and representing a first and prior lien, except for taxes not then delinquent, on personal property constituting durable equipment and owned by the mortgagor and kept and used in the mortgaged premises.
For the purposes of this section, “durable equipment” includes only mechanical refrigerators, air conditioning equipment, mechanical laundering machines, heating and cooking stoves and ranges, and in the case of apartment houses, motels and hotels, room furniture and furnishings also.
Prior to the acquisition of a chattel mortgage under this section, items of property to be included therein shall be separately appraised by a qualified appraiser and the fair market value thereof determined. No chattel loan shall exceed in amount the same ratio of loan to the value of the property as is applicable to the companion loan on the real property.
This section does not prohibit an insurer from taking liens on personal property as additional security for any investment otherwise eligible under this chapter.

History. Laws 1967, ch. 136, § 130; W.S. 1957, § 26.1-30; W.S. 1977, § 26-7-121; Laws 1983, ch. 190, § 1.

Cross references. —

As to provisions of the Uniform Commercial Code regarding secured transactions, see §§ 34.1-9-101 through 34.1-9-709.

§ 26-7-112. Security interest in chattels; time limit for disposal.

Except as stated in subsection (b) of this section, the insurer shall dispose of real property acquired under W.S. 26-7-107(a)(xiii)(A) within five (5) years after it ceases to be necessary to the insurer in the transaction of its business and real property acquired under W.S. 26-7-107(a)(xiii)(B), (C) and (D) within five (5) years after the date of acquisition.
Upon satisfactory proof that the insurer’s interests will suffer materially by the forced sale of real property, the commissioner, by order, may grant a reasonable extension of the period within which the insurer shall dispose of any particular parcel of real property, unless the insurer elects to hold the real property as an investment for income purposes under W.S. 26-7-107(a)(xiii)(F), in which case thereafter the real property is deemed to have been acquired at a cost equal to its book value at the time of the election and to be held under and subject to that subparagraph.

History. Laws 1967, ch. 136, § 132; W.S. 1957, § 26.1-132; W.S. 1977, § 26-7-123; Laws 1983, ch. 190, § 1.

§ 26-7-113. Disposal of ineligible investments; time limit for disposal.

Any personal property or securities lawfully acquired by an insurer which it could not otherwise have invested in or loaned its funds upon at the time of the acquisition, shall be disposed of within three (3) years from date of acquisition unless within that period the security becomes an eligible investment, except that any security or personal property acquired under any agreement of bulk reinsurance, merger or consolidation may be retained for a longer period if so provided in the plan for reinsurance, merger or consolidation as the commissioner approves under chapter 24 of this code [title 26]. Upon the insurer’s application and proof that forced sale of any such property or security would materially injure its interests, the commissioner may extend the disposal period for an additional reasonable time.

History. Laws 1967, ch. 136, § 133; W.S. 1957, § 26.1-133; W.S. 1977, § 26-7-124; Laws 1983, ch. 190, § 1.

§ 26-7-114. Disposal of ineligible investments; failure to dispose; disposal of ineligible investments unlawfully acquired.

Any real property, personal property or securities lawfully acquired and held by an insurer after expiration of the period for disposal thereof or any extension of that period as provided in W.S. 26-7-107(a)(vi) or 26-7-107(a)(vii), shall not be allowed as an insurer’s asset.
An insurer shall immediately dispose of any ineligible investment unlawfully acquired. The commissioner shall suspend or revoke the insurer’s certificate of authority if the insurer fails to dispose of the investment within any reasonable time the commissioner, by order, specifies.

History. Laws 1967, ch. 136, § 134; W.S. 1957, § 26.1-134; W.S. 1977, § 26-7-125; Laws 1983, ch. 190, § 1.

§ 26-7-115. Prohibited investments; securities underwriting prohibited.

In addition to investments excluded pursuant to other provisions of this code, an insurer shall not invest in or lend its funds upon the security of:
1. Issued shares of its own capital stock, except for the purpose of mutualization under W.S. 26-24-143 ;
2. Securities issued by any corporation or enterprise the controlling interest of which is or after the insurer’s acquisition will be held by the insurer or any combination of the insurer and the insurer’s directors, officers, parent corporation, subsidiaries or controlling stockholders and the spouses and children of any of them. Investments in controlled insurance corporations or subsidiaries under W.S. 26-7-107(a)(vi), (vii) or (xiv) are not subject to this provision;
3. Any note or other evidence of indebtedness of any director, officer, employee or controlling stockholder of the insurer or of the spouse or child of any of them, except as to policy loans authorized under W.S. 26-7-108 .
No insurer shall underwrite or participate in the underwriting of an offering of securities or property by any other person.

History. Laws 1967, ch. 136, § 137; W.S. 1957, § 26.1-137; W.S. 1977, § 26-7-127; Laws 1983, ch. 190, § 1; 1994, ch. 76, § 2.

§ 26-7-116. Investments of foreign insurers.

The investment portfolio of a foreign or alien insurer shall be as permitted by the laws of its domicile if of a quality substantially equal to that required under this chapter for similar funds of like domestic insurers. In determining the relative quality and value of the investment portfolio of a foreign or alien insurer, the commissioner, for purposes of comparison, may apply the provisions of this code [title 26] regulating investments of domestic insurers and valuation of those insurers. If the commissioner determines that the investment portfolio of a foreign or alien insurer is not of a quality substantially equal to that required under this chapter for similar funds of like domestic insurers, he may refuse to continue or may suspend or revoke an insurer’s certificate of authority in accordance with W.S. 26-3-115 .

History. Laws 1967, ch. 136, § 138; W.S. 1957, § 26.1-138; Laws 1977, ch. 41, § 1; W.S. 1977, § 26-7-128; Laws 1983, ch. 190, § 1.

Chapter 8 Administration of Assets and Deposits

Editor's notes. —

Sections 26-8-101 through 26-8-114 have been designated as Article 1, Administration of Deposits by the Legislative Service Office.

Am. Jur. 2d, ALR and C.J.S. references. —

44 C.J.S. Insurance §§ 106, 117.

Article 1. Administration of Deposits

§ 26-8-101. Authorized deposits of insurers.

The following deposits of insurers when made through the commissioner shall be accepted and held, subject to this chapter:
1. Deposits required under this code [title 26] for authority to transact insurance in this state;
2. Deposits of domestic insurers if made pursuant to the laws of other states, provinces and countries as a requirement for authority to transact insurance therein;
3. Deposits in any additional amounts permitted under W.S. 26-8-109(b).

History. Laws 1917, ch. 93, § 1; C.S. 1920, § 5251; R.S. 1931, § 57-409; C.S. 1945, § 52-1009; W.S. 1957, §§ 26-26, 26.1-139; Laws 1967, ch. 136, § 139; 1983, ch. 190, § 1.

Cross references. —

As to deposits required of insurers, see § 26-3-111 .

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-8-102. Purposes for holding deposits.

Deposits shall be held for purposes as follows:
1. Deposits made in this state under W.S. 26-3-111 shall be held in trust for the purposes stated in that section;
2. A deposit made in this state by a domestic insurer transacting insurance in another state, province or country, as required by the laws thereof, shall be held in trust for the protection of all the insurer’s policyholders or all its policyholders and creditors or for any other purpose specified by those laws;
3. A deposit required under W.S. 26-3-130 shall be held for purposes specified by the commissioner’s order pursuant to which the deposit is to be made.

History. Laws 1967, ch. 136, § 140; W. S. 1957, § 26.1-140; Laws 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-8-103. Securities eligible for deposit.

Any deposits required under W.S. 26-3-111 for authority to transact insurance in this state shall consist of any combination of certificates of deposit issued by solvent banks, public obligations as described in W.S. 26-7-107(a)(i) or corporate obligations described in W.S. 26-7-107(a)(iii).
Any other deposits of a domestic insurer held in this state pursuant to the laws of another state, province or country shall be comprised of assets described in subsection (a) of this section and of any additional securities required or permitted by those laws, except common stocks, mortgages of any kind and real property.
Deposits of foreign insurers made in this state under W.S. 26-3-130 shall consist of assets the commissioner requires pursuant to that law.

History. Laws 1967, ch. 136, § 141; W.S. 1957, § 26.1-141; Laws 1983, ch. 190, § 1.

§ 26-8-104. Depository.

Deposits made in this state under this code [title 26] shall be made through and with the commissioner’s approval in safe deposit with an established safe deposit institution, bank or trust company located in this state and selected by the insurer.
If the deposit is kept in safe deposit, the box or compartment in which are kept the assets and securities comprising the deposit shall be placed in a fireproof safe deposit vault and shall require two (2) distinctly differing keys to open it. One (1) of the keys shall at all times be kept by the commissioner and the other key shall at all times be kept by the insurer. The box or compartment shall not at any time be opened or remain open except through the joint action and in the presence of both the commissioner and the insurer’s authorized representative.
The insurer shall pay the customary fees for the safekeeping of its deposit.

History. Laws 1917, ch. 93, § 2; C.S. 1920, § 5252; R.S. 1931, § 57-410; C.S. 1945, § 52-1010; W.S. 1957, §§ 26-27, 26.1-142; Laws 1967, ch. 136, § 142; 1983, ch. 190, § 1.

§ 26-8-105. Custodial arrangements.

Instead of deposit into safe deposit as provided in W.S. 26-8-104 , upon the insurer’s written request the commissioner may permit the insurer to make and maintain the deposit under custodial arrangements with the trust department of an established bank located in Wyoming.
With the commissioner’s written advance approval, the insurer may deposit certain of its securities under custodial arrangements with an established bank or trust company located outside this state, if the custodial bank or trust company issues original receipts for those securities and they are held in safe deposit or custody subject to the requirements of W.S. 26-8-104(b) or subsection (a) of this section.
The form and terms of all such custodial arrangements shall be as the commissioner prescribes or approves consistent with the applicable provisions of this code [title 26].
The insurer shall bear the costs of custodial arrangements.

History. Laws 1967, ch. 136, § 143; W.S. 1957, § 26.1-143; Laws 1983, ch. 190, § 1.

§ 26-8-106. Commissioner's record of deposits; vouchers as to assets deposited.

The commissioner shall:
1. Give the depositing insurer vouchers as to assets deposited with him;
2. Keep a record of the assets comprising each insurer’s deposit, showing as far as practical the amount and market value of each item and each of his transactions relative thereto.

History. Laws 1917, ch. 93, § 1; C.S. 1920, § 5251; R.S. 1931, § 57-409; C.S. 1945, § 52-1009; W.S. 1957, § 26-26, 26.1-144; Laws 1967, ch. 136, § 144; 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-8-107. Assignment or transfer of securities deposited to commissioner.

Any assets deposited by an insurer and not negotiable by delivery shall be assigned or transferred to the commissioner and his successors in office. Upon release of any such security or asset to the insurer, the commissioner shall reassign or transfer the security or asset to the insurer.

History. Laws 1967, ch. 136, §§ 117, 145; W.S. 1957, §§ 26.1-117, 26.1-145; W.S. 1977, §§ 26-7-108 , 26-8-107 ; Laws 1983, ch. 190, § 1.

Cross references. —

As to assignment or transfer of investment securities under the Uniform Commercial Code, see §§ 34.1-8-101 through 34.1-8-603.

§ 26-8-108. Appraisal of securities deposited.

Prior to acceptance for deposit of any asset, or at any time thereafter while so deposited, the commissioner may have the asset appraised or valued by competent appraisers. The insurer shall bear the reasonable costs of the appraisal or valuation.

History. Laws 1967, ch. 136, § 146; W.S. 1957, § 26.1-146; Laws 1983, ch. 190, § 1.

§ 26-8-109. When excess deposits may be required.

If assets deposited by an insurer under this chapter are subject to material fluctuations in market value, the commissioner may require the insurer to deposit and maintain on deposit additional assets in an amount reasonably necessary to assure that the deposit at all times has a market value of not less than the amount specified under the law by which the deposit is required.
An insurer not required to make additional deposits may deposit assets in an amount exceeding its deposit required or otherwise permitted under this code [title 26] by not more than twenty percent (20%) of the required or permitted deposit, or twenty thousand dollars ($20,000.00), whichever is larger, for the purpose of absorbing fluctuations in the value of assets deposited and to facilitate exchange and substitution of those assets. During the insurer’s solvency any excess deposit shall be released to the insurer upon its request. During the insurer’s insolvency, an excess deposit shall be released only as provided in W.S. 26-8-113(d).

History. Laws 1967, ch. 136, § 147; W.S. 1957, § 26.1-147; Laws 1983, ch. 190, § 1.

Cross references. —

For provision as to deposit required of insurers, see § 26-3-111 .

§ 26-8-110. Rights of solvent insurer.

If the insurer is solvent and in compliance with this code [title 26] it may:
1. Demand, receive, sue for and recover the income from the assets deposited;
2. Exchange and substitute for the deposited assets, or any part thereof, other eligible securities and assets of equivalent or greater market value; and
3. At any reasonable time inspect its deposit.

History. Laws 1917, ch. 93, § 2; C.S. 1920, § 5252; R.S. 1931, § 57-410; C.S. 1945, § 52-1010; W.S. 1957, § 26-27, 26.1-148; Laws 1967, ch. 136, § 148; 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-8-111. Levy upon deposit.

No judgment creditor or other claimant of an insurer has the right to levy upon any of the assets held in this state as a deposit for the protection of the insurer’s policyholders or creditors or both. As to a deposit made pursuant to W.S. 26-3-111 , levy on that deposit is permitted if provided in the commissioner’s order under which the deposit is required.

History. Laws 1967, ch. 136, § 149; W.S. 1957, § 26.1-149; Laws 1983, ch. 190, § 1.

§ 26-8-112. Deficiency of deposit; failure to cure.

If for any reason the market value of an insurer’s assets held on deposit in this state as required under this code [title 26] falls below the required amount, the insurer shall promptly deposit other or additional assets eligible for deposit sufficient to cure the deficiency. If the insurer fails to cure the deficiency within twenty (20) days after receipt of notice thereof by registered or certified mail from the commissioner, the commissioner shall revoke the insurer’s certificate of authority.

History. Laws 1967, ch. 136, § 150; W.S. 1957, § 26.1-150; Laws 1983, ch. 190, § 1.

Cross references. —

For provision as to deposit required of insurers, see § 26-3-111 .

§ 26-8-113. Duration and release of deposit.

Any deposit an insurer makes in this state pursuant to this code [title 26], including assets held in another state under custodial arrangements permitted by W.S. 26-8-105(b), shall be held as long as:
1. There is outstanding any liability of the insurer as to which the deposit was so required; or
2. The basis of retaliation exists if the deposit was required under W.S. 26-3-130 .
Upon a domestic insurer’s request, the commissioner shall return to the insurer the whole or any portion of its assets held on deposit if the commissioner is satisfied that the assets to be returned are not subject to liability and are not required to be longer held by any provision of law or purposes of the original deposit. If the insurer has reinsured all its outstanding risks in another insurer authorized to transact insurance in this state, the commissioner shall deliver the assets and securities to the insurer assuming the risks, upon the domestic insurer’s written notice that the assets have been assigned and transferred to the reinsuring insurer. The notice shall be accompanied by a verified copy of the assignment or transfer.
The commissioner shall return any deposit made in this state by a foreign insurer, if that insurer ceases transacting insurance in this state and is not subject to any liability in this state for which the deposit was held.
If the insurer is subject to delinquency proceedings as defined in W.S. 26-28-101 , upon the order of a court of competent jurisdiction the commissioner shall yield the insurer’s assets held on deposit to the insurer’s receiver, conservator, rehabilitator or liquidator, or to any other properly designated official who succeeds to the management and control of the insurer’s assets.
No release of deposited assets shall be made except upon application to and the written order of the commissioner. The commissioner has no personal liability for any release of any deposit or part thereof he makes in good faith.

History. Laws 1967, ch. 136, § 151; W.S. 1957, § 26.1-151; Laws 1983, ch. 190, § 1.

§ 26-8-114. Commissioner's liability.

If the commissioner willfully fails to require, deposit, keep, account and receipt for, or surrender in the manner by law authorized or required any assets as provided in this code [title 26], he is responsible upon his official bond therefor and suit may be brought upon his bond by any person injured by the failure.

History. Laws 1917, ch. 93, § 2; C.S. 1920, § 5252; R.S. 1931, § 57-410; C.S. 1945, § 52-1010; W.S. 1957, §§ 26-27, 26.1-152; Laws 1967, ch. 136, § 152; 1983, ch. 190, § 1.

Article 2. Holding of Securities

Editor's notes. —

Laws 2004, ch. 14, § 3, makes the act effective July 1, 2004.

§ 26-8-201. Definitions.

As used in this article:
1. “Clearing corporation” means a corporation as defined in W.S. 34.1-8-102(a)(v), except that with respect to securities issued by institutions organized or existing under the laws of any foreign country or securities used to meet the deposit requirements pursuant to the laws of a foreign country as a condition of doing business therein, clearing corporation may include a corporation which is organized or existing under the laws of any foreign country and is legally qualified under those laws to effect transactions in securities by computerized book-entry. Clearing corporation also includes the “treasury/reserve automated debt entry securities system” and the “treasury direct” book-entry securities systems established pursuant to 31 U.S.C. § 3100, et seq., 12 U.S.C part 391 and 5 U.S.C. part 301;
2. through (iv) Repealed by Laws 2007, ch. 44, § 3.
3. “Security” means as defined in W.S. 34.1-8-102(a)(xv);
4. “Custodian” means a national bank, state bank or a trust company which participates in a clearing corporation.

History. Laws 2004, ch. 14, § 1; 2007, ch. 44, §§ 2, 3.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

The 2007 amendment, effective July 1, 2007, in (a) added the last sentence in (i), repealed (ii) through (iv) pertaining to the definitions of “‘Direct participant,’” “‘Federal reserve book-entry system,’” and “‘Bank,’” and added (vi).

§ 26-8-202. Use of book-entry systems.

Notwithstanding any other provision of law, but subject to W.S. 26-24-129 , a domestic insurer may deposit or arrange for the deposit of securities held in or purchased for its general account and its separate accounts in a clearing corporation. When securities are deposited with a clearing corporation, certificates representing securities of the same class of the same issuer may be merged and held in bulk in the name of the nominee of the clearing corporation with any other securities deposited with the clearing corporation by any person, regardless of the ownership of the securities, and certificates representing securities of small denominations may be merged into one (1) or more certificates of larger denominations. The records of any custodian through which an insurer holds securities in a clearing corporation, shall at all times show that the securities are held for the insurer and the accounts in which they are held. Ownership of, and other interests in, the securities may be transferred by bookkeeping entry on the books of the clearing corporation without physical delivery of certificates representing the securities.
The commissioner is authorized to promulgate rules and regulations governing the deposit by insurers of securities with clearing corporations, including establishing standards for national banks, state banks and trust companies to qualify as custodians for insurance company securities.

History. Laws 2004, ch. 14, § 1; 2007, ch. 44, § 2.

The 2007 amendment, effective July 1, 2007, deleted “or the federal reserve book entry system” in (a) and (b); in (a), substituted “custodian” for “bank,” deleted “and the records of any custodian banks through which an insurer holds securities in” preceding “a clearing corporation,” and deleted “in either case” preceding “physical”; in (b), substituted “insurers” for “insurance companies” and inserted “including establishing records for national banks, state banks and trust companies to qualify as custodians for insurance company securities.”

§ 26-8-203. Deposit of securities by insurers.

Notwithstanding any other provision of law, the securities qualified for deposit under this chapter may be deposited with a clearing corporation. Securities deposited with a clearing corporation and used to meet the deposit requirements set forth in chapter 3 of this code shall be under the control of the commissioner and shall not be withdrawn by the insurer without the approval of the commissioner. Any insurer holding securities in this manner shall provide to the commissioner evidence issued by its custodian through which the insurer has deposited the securities in a clearing corporation in order to establish that the securities are actually recorded in an account in the name of the custodian and that the records of the custodian reflect that the securities are held subject to the order of the commissioner.

History. Laws 2004, ch. 14, § 1; 2007, ch. 44, § 2.

The 2007 amendment, effective July 1, 2007, rewrote this section by deleting references to the “federal reserve book entry system” throughout and updated an internal reference to “chapter 3 of this code.”

§ 26-8-204. Deposit of securities by foreign insurers.

Notwithstanding any other provision of law, securities eligible for deposit under the insurance laws of this state relating to deposit of securities by an insurer as a condition of commencing or continuing to do an insurance business in this state may be deposited with a clearing corporation. Securities deposited with a clearing corporation and used to meet the deposit requirements under the insurance laws of this state shall be under the control of the commissioner and shall not be withdrawn by the insurer without the approval of the commissioner. Any insurer holding securities in this manner shall provide to the commissioner evidence issued by its custodian in order to establish that the securities are actually recorded in an account in the name of the custodian and evidence that the records of the custodian reflect that the securities are held subject to the order of the commissioner.

History. Laws 2004, ch. 14, § 1; 2007, ch. 44, § 2.

The 2007 amendment, effective July 1, 2007, rewrote this section by deleting references to the “federal reserve book entry system” throughout, deleted “or other direct participant or bank” following “name of the custodian,” and made similar and stylistic changes.

Chapter 9 Agencies and Adjusters

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance §§ 122 to 182.

Public regulation or control of insurance agents or brokers, 10 ALR2d 950.

Liability of insurance company for negligent operation of automobile by agent or broker, 36 ALR2d 261.

Liability of insurance company for libel or slander by its agents, 55 ALR2d 828.

Authority of insurance agent to borrow money for principal, 55 ALR2d 1215.

Construction of insurance agency or brokerage contract dealing with computation of commissions on renewal premiums, 78 ALR2d 760.

Coverage and omissions in insurance brokers' and agents' errors and omissions policy, 89 ALR2d 1192.

Undertakers as agents of insurance companies, 89 ALR2d 1338.

Right of insurance agent to sue in his own name for unpaid premium, 90 ALR2d 1291.

Insurance agent's statement or conduct indicating that insurer's cancellation of policy shall not take effect as binding on insurer, 3 ALR3d 1135.

Transmission of insurance policy to agent as satisfying provision requiring delivery to insured, 19 ALR3d 953.

Validity of indemnity insurance contract, 27 ALR3d 663.

Reformation of insurance policy to correctly identify risks and causes of loss, 32 ALR3d 661.

Liability of insurance agent for exposure of insurer to liability because of issuance of policy beyond authority or contrary to instructions, 35 ALR3d 899.

Insurance agent's right to commissions on renewal premiums, 36 ALR3d 958.

Insurer's tort liability for acts of adjuster seeking to obtain settlement or release, 39 ALR3d 739.

Person to whom renewal premium may be paid or tendered so as to bind insurer, 42 ALR3d 751.

Insured's ratification, after loss, of policy procured without his authority, knowledge or consent, 52 ALR3d 235.

Liability of insurance agent to insured for failure to procure insurance, 64 ALR3d 398.

Liability of insurance agent on ground of inadequacy of coverage procured, 72 ALR3d 704.

When is termination of insurance agency contract wrongful, so as to make insurer liable to agent, 5 ALR4th 1080.

Provisions of insurance company's contract with independent insurance agent restricting competitive placements by agent as illegal restraint of trade under state law, 42 ALR4th 1072.

Liability of independent or public insurance adjuster to insured for conduct in adjusting claim, 50 ALR4th 900.

Necessity of expert testimony to show standard of care in negligence action against insurance agent or broker, 52 ALR4th 1232.

Liability of tortfeasor's insurance agent or broker to injured party for failure to procure or maintain liability insurance, 72 ALR4th 1095.

Liability of insurer or agent of insurer for failure to advise insured as to coverage needs, 88 ALR4th 249.

Liability of insurance agent or broker for placing insurance with insolvent carrier, 42 ALR5th 199.

44 C.J.S. Insurance §§ 178 to 217.

Article 1. In General

Editor's notes. —

This article was repealed and renumbered by Laws 2001, ch. 201, effective January 1, 2002. For present similar provisions, see article 2 of this chapter.

§§ 26-9-101 through 26-9-103. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1921, ch. 142, § 3, and Laws 1967, ch. 136, §§ 153 and 162, related to the applicability of the chapter and license requirements.

§ 26-9-104. [Renumbered.]

Amended and renumbered as W.S. 26-9-226 by Laws 2001, ch. 201, § 3.

§§ 26-9-105 through 26-9-115. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1921, ch. 142, § 3; Laws 1955, ch. 34, § 1; and Laws 1967, ch. 136, §§ 168 through 174, related to requirements, application, and examining for licenses.

§ 26-9-116. [Renumbered.]

Amended and renumbered as W.S. 26-9-227 by Laws 2001, ch. 201, § 3.

§§ 26-9-117 through 26-9-123. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1967, ch. 136, §§ 178 through 183, related to continuation, termination, and temporary licenses.

§§ 26-9-124 through 26-9-126. [Renumbered.]

Amended and renumbered as W.S. 26-9-223 through 26-9-225 by Laws 2001, ch. 201, § 3.

§§ 26-9-127 and 26-9-128. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1967, ch. 136, §§ 187 and 188, related to solicitors and insurance vending machines.

§§ 26-9-129 and 26-9-130. [Renumbered.]

Amended and renumbered as W.S. 26-9-228 and 26-9-229 by Laws 2001, ch. 201, § 3.

§§ 26-9-131 through 26-9-133. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1967, ch. 136, §§ 191, 192, and 195, related to exchange of business, sharing commissions, and nonresident agents.

§§ 26-9-134 and 26-9-135. [Renumbered.]

Amended and renumbered as W.S. 26-9-230 and 26-9-219 by Laws 2001, ch. 201, § 3.

§§ 26-9-136 and 26-9-137. [Repealed.]

Repealed by Laws 2001, ch. 201, § 5.

Editor's notes. —

These sections, which derived from Laws 1967, ch. 136, §§ 196 and 197, related to suspension, revocation, and refusal of licenses.

§§ 26-9-138 through 26-9-142. [Renumbered.]

Amended and renumbered, respectively, as W.S. 26-9-232 , 26-9-220 , 26-9-221 , 26-9-231 , and 26-9-222 by Laws 2001, ch. 201, § 4.

Article 2. Insurance Producers

§ 26-9-201. Purpose and scope.

This chapter governs the qualifications and procedures for the licensing of insurance producers. This chapter does not apply to excess and surplus lines brokers licensed pursuant to W.S. 26-11-112 except as provided in W.S. 26-9-207(b), 26-9-207(c), 26-9-207(g), 26-9-208 and 26-9-230 or as expressly provided in chapter 11 of this code.

History. Laws 2001, ch. 201, § 1; 2011, ch. 60, § 2; 2012, ch. 37, § 2.

The 2011 amendment, effective July 1, 2011, substituted “W.S. 26-9-207(b), 26-9-207(c)” for “W.S. 26-9-207(h).”

The 2012 amendment, substituted “26-9-207(g), 26-9-208 and 26-9-230 ” for “and 26-9-208 .”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-9-202. Definitions.

As used in this chapter:
1. “Business entity” means a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity;
2. “Endorsee” means an employee or representative of a specialty limited lines producer;
3. “Home state” means the District of Columbia and any state or territory of the United States in which an insurance producer maintains his principal place of residence or principal place of business and is licensed to act as an insurance producer;
4. “License” means a document issued by the commissioner authorizing a person to act as an insurance producer for the lines of authority specified in the document. The license itself does not create any authority, actual, apparent or inherent, in the holder to represent or commit an insurer;
5. “Limited line credit insurance” includes credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, and any other form of insurance offered in connection with an extension of credit that is limited to partially or wholly extinguishing that credit obligation that the commissioner determines should be designated a form of limited line credit insurance;
6. “Limited line credit insurance producer” means a person who sells, solicits or negotiates one (1) or more forms of limited line credit insurance coverage to individuals through a master, corporate, group or individual policy;
7. “Limited lines insurance” means those lines of insurance referred to in paragraph (xxi) of this subsection and W.S. 26-9-234 , 26-32-101 , 26-37-102(a)(iv) or any other line of insurance the commissioner deems necessary to recognize for the purposes of complying with W.S. 26-9-208(e);
8. “Limited lines producer” means a person authorized by the commissioner to sell, solicit or negotiate limited lines insurance;
9. “Location” means any physical location in the state of Wyoming or any website, call center site or similar location directed to residents of the state of Wyoming;
10. “Negotiate” means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular contract of insurance concerning any of the substantive benefits, terms or conditions of the contract, provided that the person engaged in that act either sells insurance or obtains insurance from insurers for purchasers;
11. “Portable electronic device insurance” means insurance which may be offered on a month to month or other periodic basis as a group or master property and casualty insurance policy providing coverage for the repair or replacement of portable electronic devices which may provide coverage for portable electronic devices against any one (1) or more of the following causes of loss: loss, theft, inoperability due to mechanical failure, malfunction, damage or other similar causes of loss. For purposes of this title, with respect to portable electronic device insurance, property and casualty insurance shall be deemed to include inland marine insurance. Portable electronic device insurance does not include a service contract as defined in chapter 49 of this title;
12. “Rental car insurance” means insurance offered, sold or solicited in connection with and incidental to the rental of rental cars, whether at the rental office or by preselection of coverage in master, corporate, group or individual agreements that is nontransferable, applies only to the rental car that is the subject of the rental agreement and is limited to the following kinds of insurance and shall not include the rental car company’s agreement to waive its right of indemnity against a renter for damages to the rental vehicle:
  1. Personal accident insurance for renters and other rental car occupants, for accidental death or dismemberment and for medical expenses resulting from an accident that occurs with the rental car during the rental period;
  2. Liability insurance, which at the exclusive option of the rental car company, may include uninsured or underinsured motorist coverage, whether offered separately or in combination with other liability insurance, that provides protection to the renters and to other authorized drivers of a rental car for liability arising from the operation of the rental car during the rental period;
  3. Personal effects insurance that provides coverage to renters and other vehicle occupants for loss of or damage to, personal effects in the rental car during the rental period;
  4. Roadside assistance and emergency sickness protection insurance; or
  5. Any other insurance product sold incidental to the rental transaction.
13. “Sell” means to exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer;
14. “Solicit” means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular insurer;
15. “Specialty limited lines insurance” means insurance offered or disseminated in connection with and ancillary to a specialty limited lines producer’s core business. The term includes the following types of insurance: rental car insurance, portable electronic device insurance, travel insurance and any other line of insurance the commissioner deems necessary;
16. “Specialty limited lines producer” means a person or business entity licensed as a limited lines producer and qualified to offer, sell or solicit specialty limited lines insurance;
17. “Terminate” means the cancellation of the relationship between an insurance producer and the insurer or the termination of a producer’s authority to transact insurance;
18. “Travel insurance” means insurance coverage for personal risks incident to planned travel, including but not limited to interruption or cancellation of trip or event, loss of baggage or personal effects, damages to accommodations or rental vehicles, and sickness, accident, disability or death occurring during travel, and does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six (6) months or longer;
19. “Uniform application” means the current version of the National Association of Insurance Commissioners’ uniform application for resident and nonresident producer licensing;
20. “Uniform business entity application” means the current version of the National Association of Insurance Commissioners’ uniform business entity application for resident and nonresident business entities;
21. “Crop insurance” means insurance providing protection against damage to crops from unfavorable weather conditions, fire, lightning, flood, hail, insect infestation, disease or other yield-reducing conditions or perils provided by the private insurance market or that is provided by the federal crop insurance corporation, including multi-peril crop and protection of revenue from adverse market fluctuation insurance.

History. Laws 2001, ch. 201, § 1; 2011, ch. 60, § 2; 2013 ch. 123, § 2, effective July 1, 2013; 2017 ch. 15, § 2, effective July 1, 2017.

The 2011 amendment, effective July 1, 2011, in (a)(vi), deleted “26-29-233” after “26-9-221,” and added “26-50-103” after “26-37-102(a)(iv).”

The 2013 amendment, effective July 1, 2013, added (a)(ii), (ix), (xi), (xii), (xv), (xvi), and (xviii), and renumbered subsections accordingly; and revised the list of references in (a)(vii).

The 2017 amendment, in (a)(vii), deleted “26-9-221” preceding “26-9-234,” and inserted “26-32-101”; and added (a)(xxi).

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-9-203. License required.

A person shall not sell, solicit or negotiate insurance in this state for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this chapter.

History. Laws 2001, ch. 201, § 1.

Cross references. —

As to surplus line broker's license, see §§ 26-11-112 , 26-11-113 .

As to annual license for fraternal benefit societies, see § 26-29-227 .

As to licensing of foreign or alien fraternal benefit societies, see § 26-29-229 .

As to licensing of agents of fraternal benefit societies, see § 26-29-233 .

Am. Jur. 2d, ALR and C.J.S. references. —

Liability of insurance agent or broker on ground of inadequacy of liability insurance coverage procured, 60 ALR5th 165.

§ 26-9-204. Exceptions to licensing.

Nothing in this chapter shall be construed to require an insurer to obtain an insurance producer license. As used in this section, the term “insurer” does not include an insurer’s officers, directors, employees, subsidiaries or affiliates.
A license as an insurance producer shall not be required of the following:
1. An officer, director or employee of an insurer or of an insurance producer, provided that the officer, director or employee does not receive any commission on policies written or sold to insure risks residing, located or to be performed in this state, and:
  1. The officer, director or employee’s activities are executive, administrative, managerial, clerical or a combination of these, and are only indirectly related to the sale, solicitation or negotiation of insurance; or
  2. The officer, director or employee’s function relates to underwriting, loss control, inspection or the processing, adjusting, investigating or settling of a claim on a contract of insurance; or
  3. The officer, director or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person’s activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation or negotiation of insurance.
2. A person who receives no commission and provides the following services:
  1. Secures and furnishes information for the purpose of group life insurance, group property and casualty insurance, group annuities, group or blanket accident and health or disability insurance; or
  2. Secures and furnishes information for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans; or
  3. Performs administrative services related to mass marketed property and casualty insurance.
3. An employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, directors or trustees are engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;
4. Employees of insurers or organizations employed by insurers who are engaging in the inspection, rating or classification of risks, or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation or negotiation of insurance;
5. A person whose activities in this state are limited to advertising without the intent to solicit insurance in this state through communications in printed publications or other forms of electronic mass media whose distribution is not limited to residents of the state, provided that the person does not sell, solicit or negotiate insurance that would insure risks residing, located or to be performed in this state;
6. A person who is not a resident of this state who sells, solicits or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one (1) state insured under that contract, provided that person is otherwise licensed as an insurance producer to sell, solicit or negotiate the insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or
7. A salaried full-time employee who counsels or advises his employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided the employee does not sell or solicit insurance or receive a commission.

History. Laws 2001, ch. 201, § 1.

§ 26-9-205. Application for examination.

A resident individual applying for an insurance producer license shall pass a written examination unless exempt pursuant to W.S. 26-9-209 . The examination shall test the knowledge of the individual concerning the lines of authority for which application is made, the duties and responsibilities of an insurance producer and the insurance laws and regulations of this state. Examinations required by this section shall be developed and conducted by the commissioner who may promulgate appropriate rules and regulations on the administration of examinations.
The commissioner may make arrangements, including contracting with an outside testing service, for administering examinations. If an outside testing service is employed, each individual applying for an examination shall remit the appropriate fee for the examination to the testing service.

History. Laws 2001, ch. 201, § 1; 2017 ch. 9, § 2, effective July 1, 2017.

The 2017 amendment, effective July 1, 2017, in (a), substituted “may promulgate appropriate rules and regulations on the administration of examina- tions” for “shall adhere to the applicable instructions or recommendations of the state board of insurance agents’ examiners as provided by W.S. 26-10-104 ”; and in (b), deleted “and the state board of insurance agents’ examiners” preceding “may make arrange- ments.”

Cross references. —

For provisions as to State Board of Insurance Agent Examiners, see §§ 26-10-101 through 26-10-109 .

§ 26-9-206. Application for license.

A person applying for a resident insurance producer license shall make application to the commissioner on the uniform application and declare under penalty of refusal, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the individual’s knowledge and belief. Before approving the application, the commissioner shall find that the individual:
1. Is at least eighteen (18) years of age;
2. Has not committed any act that is a ground for denial, suspension or revocation set forth in W.S. 26-9-211 ;
3. Has paid the fees set forth in W.S. 26-4-101(a);
4. Has successfully passed the examinations for the lines of authority for which the person has applied; and
5. Has provided the commissioner fingerprints and other information and permission necessary for a criminal history record background check as provided in W.S. 7-19-201(a). The cost of the criminal history record background check shall be paid by the applicant.
A business entity acting as an insurance producer is required to obtain an insurance producer license. Application shall be made using the uniform business entity application. Before approving the application, the commissioner shall find that:
1. The business entity has paid the fees set forth in W.S. 26-4-101(a); and
2. The business entity has designated a licensed producer responsible for the business entity’s compliance with the insurance laws, rules and regulations of this state.
The commissioner may require any documents reasonably necessary to verify the information contained in an application.
Each insurer that sells, solicits or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting or negotiating limited line credit insurance a program of instruction.

History. Laws 2001, ch. 201, § 1; 2011, ch. 55, § 1.

The 2011 amendment, effective July 1, 2011, rewrote (a)(v), which formerly read: “Has provided the commissioner a credit and investigation report on the applicant from a recognized and established independent investigation and reporting agency. The cost of the report shall be paid by the applicant.”

§ 26-9-207. License.

Unless denied licensure pursuant to W.S. 26-9-211 , persons who have met the requirements of W.S. 26-9-205 and 26-9-206 shall be issued an insurance producer license. An insurance producer may receive qualification for a license in one (1) or more of the following lines of authority:
1. Life — insurance coverage on human lives including benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income;
2. Accident and health or sickness or disability — insurance coverage for sickness, bodily injury or accidental death and may include benefits for disability income;
3. Property — insurance coverage for the direct or consequential loss or damage to property of every kind;
4. Casualty — insurance coverage against legal liability, including that for death, injury or disability or damage to real or personal property;
5. Variable life and variable annuity products — insurance coverage provided under variable life insurance contracts and variable annuities;
6. Personal lines — property and casualty insurance coverage sold to individuals and families for primarily noncommercial purposes;
7. Credit — limited line credit insurance;
8. Any other line of insurance permitted under state laws or regulations.
An individual insurance producer, adjuster or surplus lines broker license shall remain in effect unless revoked or suspended if on or before the last day of the month of the licensee’s birthday in the second year following the issuance or renewal of the license the continuation fee set forth in W.S. 26-4-101(a) is paid, the continuing education requirements are met by the due date, a written request for continuation of the license is made to the commissioner on forms prescribed by the commissioner and the licensee remains in compliance with all other applicable provisions of this code. An insurance producer or surplus lines broker license issued to a business entity shall remain in effect unless revoked or suspended if on or before the last day of the month in which the license was effective in the second year following the issuance or renewal of the license the continuation fee set forth in W.S. 26-4-101(a) is paid, a written request for continuation of the license is made to the commissioner on forms prescribed by the commissioner and the licensee remains in compliance with all other applicable provisions of this code.
An individual insurance producer, adjuster or surplus lines broker who allows his license to lapse may, within twelve (12) months from the due date of the continuation fee, reinstate the same license without the necessity of passing a written examination. However, a penalty equal to the amount of the continuation fee shall be required in addition to the continuation fee for any continuation request received after the due date. A business entity insurance producer or surplus lines broker that allows its license to lapse may, within twelve (12) months from the due date of the continuation fee, reinstate the same license, however, a penalty equal to the amount of the continuation fee shall be required in addition to the continuation fee for any continuation request received after the due date.
A licensed insurance producer who is unable to comply with license renewal procedures due to military service or some other extenuating circumstance such as a long-term medical disability may request a waiver of those procedures. The producer may also request a waiver of any examination requirement or any other fine or sanction imposed for failure to comply with renewal procedures.
The license shall contain the licensee’s name, address, personal identification number, date of issuance, the lines of authority, the expiration date and any other information the commissioner deems necessary.
Licensees shall inform the commissioner by any means acceptable to the commissioner of a change of name, address, telephone number or other contact information as defined by rule and regulation of the commissioner within thirty (30) days of the change.
The commissioner may contract with nongovernmental entities, including the National Association of Insurance Commissioners or any affiliates or subsidiaries that association oversees, to perform any ministerial functions, including the collection of fees, related to licensing that the commissioner and the nongovernmental entity may deem appropriate.
and (j) Repealed by Laws 2011, ch. 60, § 3.

History. Laws 2001, ch. 201, § 1; 2004, ch. 7, § 1; 2011, ch. 60, §§ 2, 3; 2012, ch. 37, § 2; 2017 ch. 15, § 2, effective July 1, 2017; 2019 ch. 19, § 1, effective July 1, 2019.

The 2004 amendment, effective July 1, 2004, deleted “annual” or a variant preceding “continuation fee” or “continuation request” throughout the section; in (b) and the introductory paragraph of (h), substituted “the last day of the month of the licensee's birthday in the second year following the issuance or renewal of the license” for “March 31”; in (b), inserted “individual” preceding “insurance producer”; and in (j), substituted “its renewal date” for “March 31.”

The 2011 amendment, effective July 1, 2011, added “adjuster or surplus lines broker” in (b) and (c); in (b), deleted “for resident individual producers” after “education requirements”; in (c), deleted “unpaid” after “amount of the,” and substituted “continuation fee” for “unpaid fee” after “addition to the”; and repealed former (h) and (j) which read: “Each service representative, adjuster and surplus line broker license issued under this code shall continue in force until expired, suspended, revoked or otherwise terminated, if the applicable continuation fee specified in W.S. 26-4-101 is paid to the commissioner, on or before the last day of the month of the licensee's birthday in the second year following the issuance or renewal of the license, accompanied by a written request for continuation made as follows: (i) As to adjuster and surplus line broker licenses, request made and signed by the licensee; (ii) As to service representative licenses, request made and signed by the employer as to whom licensed. (j) Any license referred to in subsection (h) of this section is considered expired if the commissioner does not receive the fee and the request for continuation by midnight on its renewal date, except that any holder of such a license who allows his license to lapse may, within twelve (12) months from the due date of the continuation fee, reinstate the same license without the necessity of passing a written examination. However, a penalty equal to the amount of the unpaid continuation fee shall be required in addition to the unpaid fee for any continuation request received after the due date.”

The 2012 amendment, added “or surplus lines broker” in (g).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2017 amendment, effective July 1, 2017, in (f), inserted “name,” and inserted “telephone number or other contact information as defined by rule and regulation of the commissioner”; and in (g), deleted “producer or surplus lines broker” preceding “licensing that the.”

The 2019 amendment, effective July 1, 2019, in (b), substituted "if" for "as long as", added a comma after "date", deleted "and" and added "and the licensee remains in compliance with all other applicable provisions of this code." in the first sentence, added second sentence "An insurance producer or surplus lines broker license issued to a business entity shall remain in effect unless revoked or suspended if on or before the last day of the month in which the license was effective in the second year following the issuance or renewal of the license the continuation fee set forth in W.S. 26-4-101(a) is paid, a written request for continuation of the license is made to the commissioner on forms prescribed by the commissioner and the licensee remains in compliance with all other applicable provisions of this code."; in (c) added second sentence "A business entity insurance producer or surplus lines broker that allows its license to lapse may, within twelve (12) months from the due date of the continuation fee, reinstate the same license, however, a penalty equal to the amount of the continuation fee shall be required in addition to the continuation fee for any continuation request received after the due date."

Editor's notes. —

There is no subsection (i) in this section as it appears in the printed acts.

§ 26-9-208. Nonresident licensing.

Unless denied licensure pursuant to W.S. 26-9-211 , a nonresident person shall receive a nonresident producer license if:
1. The person is currently licensed as a resident and is in good standing in his home state;
2. The person has submitted the proper request for licensure and has paid the fees required by W.S. 26-4-101(a);
3. The person has submitted or transmitted to the commissioner the application for licensure the person submitted to his home state, or in lieu of the same, a completed uniform application; and
4. The person’s home state awards nonresident producer licenses to residents of this state on the same basis.
The commissioner may verify the producer’s licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries.
A nonresident producer who moves from one (1) state to another or a resident producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty (30) days of the change of legal residence. No fee or license application is required.
Notwithstanding any other provision of this chapter, a person licensed as a surplus lines producer in his home state shall receive a nonresident surplus lines producer license pursuant to subsection (a) of this section. Except as to subsection (a) of this section, nothing in this section otherwise amends or supercedes any provision of chapter 11 of this code.
Notwithstanding any other provision of this chapter, a person licensed as a limited line credit insurance or other type of limited lines producer in his home state shall receive a nonresident limited lines producer license, pursuant to subsection (a) of this section, granting the same scope of authority as granted under the license issued by the producer’s home state. For the purposes of this subsection, limited line insurance is any authority granted by the home state which restricts the authority of the license to less than the total authority prescribed in the associated major lines pursuant to W.S. 26-9-207(a)(i) through (vi).

History. Laws 2001, ch. 201, § 1.

Cross references. —

For other provisions as to appointment of the commissioner as attorney for acceptance of service of process, see §§ 26-3-121 , 26-3-122 .

§ 26-9-209. Exemption from examination.

An individual who applies for an insurance producer license in this state who was previously licensed for the same lines of authority in another state shall not be required to complete an examination. This exemption is only available if the person is currently licensed in that state or if the application is received within ninety (90) days of the cancellation of the applicant’s previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state’s producer database records, maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries, indicate that the producer is or was licensed in good standing for the line of authority requested.
A person licensed as an insurance producer in another state who moves to this state shall make application within ninety (90) days of establishing legal residence to become a resident licensee pursuant to W.S. 26-9-206 . No examination shall be required of that person to obtain any line of authority previously held in the prior state except where the commissioner determines otherwise by regulation.
Repealed by Laws 2013, ch. 123, § 3.

History. Laws 2001, ch. 201, § 1; 2004, ch. 7, § 1; 2011, ch. 60, § 2; 2013 ch. 123, § 3, effective July 1, 2013.

The 2004 amendment, effective July 1, 2004, in (c), deleted “annually as of April 1” following “may be issued,” and substituted “the fee specified in W.S. 26-4-101 ” for “an annual fee of ten dollars ($10.00)” in the second sentence; and inserted the present third sentence.

The 2011 amendment, effective July 1, 2011, in (c), rewrote the first sentence, which formerly read: “No examination shall be required of persons representing public carriers who, in the course of that representation, solicit or sell insurance incidental to the transportation of persons or to the storage or transportation of property.”

The 2013 amendment, effective July 1, 2013, repealed former (c), which read: “No examination shall be required of persons who solicit, negotiate or sell insurance coverage for trip cancellation, trip interruption, baggage, life, sickness and accident, disability and personal effects when limited to a specific trip and sold in connection with transportation provided by a common carrier. Persons exempted from examination pursuant to this subsection may be issued a limited insurance representative license by the commissioner upon submission of an application approved by the commissioner and payment of the fee specified in W.S. 26-4-101 . A license issued under this subsection shall continue in force until expired, suspended, revoked or otherwise terminated, if the applicable continuation fee specified in W.S. 26-4-101 is paid to the commissioner, on or before the last day of the month of the licensee's birthday in the second year following the issuance or renewal of the license. Licensees under this subsection shall be subject to the application requirements established by the commissioner, the provisions of W.S. 26-9-211 and chapter 13 of this code but shall not be subject to the other provisions of this code.”

§ 26-9-210. Temporary licensing.

The commissioner may issue a temporary insurance producer license for a period not to exceed one hundred eighty (180) days without requiring an examination if the commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:
1. To the surviving spouse or court-appointed personal representative of a licensed insurance producer who dies or becomes mentally or physically disabled to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer’s business;
2. To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license;
3. To the designee of a licensed insurance producer entering active service in the armed forces of the United States; or
4. In any other circumstance where the commissioner deems that the public interest will best be served by the issuance of this license.
The commissioner may by order limit the authority of any temporary licensee in any way deemed necessary to protect insureds and the public. The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee and may impose other similar requirements designed to protect insureds and the public. The commissioner may by order revoke a temporary license if the interest of insureds or the public are endangered. A temporary license may not continue after the owner or the personal representative disposes of the business.

History. Laws 2001, ch. 201, § 1.

§ 26-9-211. License denial, nonrenewal or revocation.

The commissioner may, after appropriate notice and opportunity for hearing pursuant to the Wyoming Administrative Procedure Act and in accordance with W.S. 26-2-125 through 26-2-129 , place on probation, suspend, revoke or refuse to issue or renew an insurance producer’s license or other license issued under this code, or may levy a civil penalty in accordance with W.S. 26-1-107 or any combination of actions, for any one (1) or more of the following causes:
1. Providing incorrect, misleading, incomplete or materially untrue information in the license application;
2. Violating any insurance laws, or violating any regulation, subpoena or order of the commissioner or of another state’s insurance commissioner;
3. Obtaining or attempting to obtain a license through misrepresentation or fraud;
4. Improperly withholding, misappropriating or converting any monies or properties received in the course of doing insurance business;
5. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;
6. Having been convicted of a felony that relates to the insurance profession or to the ability to practice as an insurance producer. For agents whose home state of licensure is not Wyoming, the commissioner may rely on licensure and disciplinary actions by the agent’s home state of licensure;
7. Having admitted or been found to have committed any insurance unfair trade practice or fraud;
8. Using fraudulent, coercive or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere;
9. Having an insurance producer license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;
10. Forging another’s name to an application for insurance or to any document related to an insurance transaction;
11. Improperly using notes or any other reference material to complete an examination for an insurance license;
12. Failing to comply with an administrative or court order imposing a child support obligation;
13. Failing to maintain a valid home state license.
The license of a business entity may be suspended, revoked or refused if the commissioner finds, after notice and opportunity for hearing, that an individual licensee’s violation was known by one (1) or more of the partners, officers or managers acting on behalf of the business entity and the violation was neither reported to the commissioner nor corrective action taken.
The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter and this code against any person who is under investigation for or charged with a violation of this chapter or this code even if the person’s license or registration has been surrendered or has lapsed by operation of law.
The commissioner may, after providing appropriate notice and opportunity for hearing as required in subsection (a) of this section, levy against any person against whom action has been taken by the commissioner the reasonable costs of investigation and administrative proceedings, not to exceed five hundred dollars ($500.00).
For persons for whom Wyoming is the home state of licensure, if the commissioner is aware at the time the commissioner takes an action under subsection (a) of this section that a person will require the written consent of an insurance regulatory official to engage in the business of insurance pursuant to 18 U.S.C. § 1033 and the result of the action under subsection (a) of this section is that the person will receive or retain a license under this code, the commissioner shall, upon request, issue the written consent.
If an employer becomes aware that an employee who is engaged in the business of insurance needs the commissioner’s consent to continue to engage in the business of insurance, the employer may direct the employee to obtain the necessary consent and, if the consent is denied, shall take action so that the employee is not engaged in the business of insurance. In cases arising under this subsection the commissioner shall give special weight to evidence, including statements from the employer, as to whether the employee has or has not engaged in any activity that relates to the offense requiring the written consent and that relates adversely to the insurance profession.

History. Laws 2001, ch. 201, § 1; 2004, ch. 7, § 1; 2015 ch. 13, § 1, effective July 1, 2015; 2017 ch. 15, § 2, effective July 1, 2017; 2018 ch. 107, § 2, effective July 1, 2018.

The 2004 amendment, effective July 1, 2004, inserted “or other license issued under this code” in the introductory paragraph of (a).

The 2015 amendment, effective July 1, 2015, added (d).

The 2017 amendment, effective July 1, 2017, added (a)(xiii) and made a related change.

The 2018 amendment, effective July 1, 2018, in (a)(vi), added “that relates to the insurance profession or to the ability to practice as an insurance producer. For agents whose home state of licensure is not Wyoming, the commissioner may rely on licensure and disciplinary actions by the agent’s home state of licensure” at the end; and added (e) and (f).

Wyoming Administrative Procedure Act. —

See § 16-3-101(a), (b)(xi).

Commissioner's right to cancel license under former statute. —

See State v. Loucks, 32 Wyo. 26, 228 P. 632, 1924 Wyo. LEXIS 44 (1924).

§ 26-9-212. Commissions.

An insurer or insurance producer shall not pay a commission, service fee, brokerage or other valuable consideration to a person for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed.
A person shall not accept a commission, service fee, brokerage or other valuable consideration for selling, soliciting or negotiating insurance in this state if that person is required to be licensed under this chapter and is not so licensed.
Renewal or other deferred commissions may be paid to a person for selling, soliciting or negotiating insurance in this state if the person was required to be licensed under this chapter at the time of the sale, solicitation or negotiation and was so licensed at that time.
An insurer or insurance producer may pay or assign commissions, brokerages or other valuable consideration to an insurance agency or to persons who do not sell, solicit or negotiate insurance in this state, unless the payment would violate W.S. 26-13-110 or 26-13-112 .

History. Laws 2001, ch. 201, § 1.

§ 26-9-213. Appointments.

An insurance producer shall not act as an agent of an insurer unless the insurance producer becomes an appointed agent of that insurer. An insurance producer who is not acting as an agent of an insurer is not required to become appointed.
To appoint a producer as its agent, the appointing insurer shall file, in a format approved by the commissioner, a notice of appointment within fifteen (15) days from the date the agency contract is executed or the first insurance application is submitted. An insurer may also elect to appoint a producer to all or some insurers within the insurer’s holding company system or group by the filing of a single appointment request.
Upon receipt of the notice of appointment, the commissioner shall verify within a reasonable time that the insurance producer is eligible for appointment. If the insurance producer is determined to be ineligible for appointment, the commissioner shall notify the insurer.
An insurer shall pay an appointment fee, in the amount set forth in W.S. 26-4-101(a), for each insurance producer appointed by the insurer.
An insurer shall remit, on or before March 31 and in a manner prescribed by the commissioner, an annual continuation appointment fee in the amount set forth in W.S. 26-4-101(a).

History. Laws 2001, ch. 201, § 1; 2004, ch. 7, § 1.

The 2004 amendment, effective July 1, 2004, in (d), substituted “an appointment fee” for “a nonrefundable appointment fee”; and, in (e), inserted “on or before March 31 and” and deleted “nonrefundable” preceding “continuation appointment fee.”

Am. Jur. 2d, ALR and C.J.S. references. —

When is termination of insurance agency contract wrongful, so as to make insurer liable to agent, 5 ALR4th 1080.

§ 26-9-214. Notification to commissioner of termination.

An insurer or authorized representative of the insurer that terminates the appointment, employment, contract or other insurance business relationship with a producer for any reason shall notify the commissioner within thirty (30) days following the effective date of the termination, using a format prescribed by the commissioner. Upon written request of the commissioner, the insurer shall provide additional information, documents, records or other data pertaining to the termination or activity of the producer.
The insurer or the authorized representative of the insurer shall promptly notify the commissioner in a format acceptable to the commissioner if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the commissioner under subsection (a) of this section had the insurer known of its existence.
Within fifteen (15) days after making the notification required by subsections (a) and (b) of this section, the insurer shall mail a copy of the notification to the producer at his last known address.
Within thirty (30) days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the commissioner. The producer shall, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall be part of the commissioner’s file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under subsection (e) or (f) of this section.
Any documents, materials or other information in the control or possession of the department that is furnished by an insurer, producer or an employee or agent thereof acting on behalf of the insurer or producer, or obtained by the commissioner in an investigation pursuant to this section shall be confidential by law and privileged, shall not be subject to W.S. 16-4-201 through 16-4-205 , shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as a part of the commissioner’s duties. Neither the commissioner nor any person who received documents, materials or other information while acting under the authority of the commissioner shall be permitted or required to testify in any private civil action concerning any confidential documents, materials or information subject to this subsection or subsection (f) of this section. In order to assist in the performance of the commissioner’s duties under this code, the commissioner:
1. May share documents, materials or other information, including the confidential and privileged documents, materials or information subject to this subsection, with other state, federal and international regulatory agencies, with the National Association of Insurance Commissioners, its affiliates or subsidiaries, and with state, federal and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material or other information;
2. May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners, its affiliates or subsidiaries and from regulatory and law enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and
3. May enter into agreements governing sharing and use of information consistent with this subsection.
No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in subsection (e) of this section. Nothing in this chapter shall prohibit the commissioner from releasing final, adjudicated actions including termination causes to a database or other clearinghouse service maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries.
An insurer, the authorized representative of the insurer, or producer that fails to report as required under the provisions of this section or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and opportunity for hearing, have its license or certificate of authority suspended or revoked and may be fined in accordance with W.S. 26-1-107 .

History. Laws 2001, ch. 201, § 1.

Am. Jur. 2d, ALR and C.J.S. references. —

When is termination of insurance agency contract wrongful, so as to make insurer liable to agent, 5 ALR4th 1080.

§ 26-9-215. Reciprocity.

The commissioner shall waive any requirements for a nonresident license applicant with a valid license from his home state, except the requirements imposed by W.S. 26-9-208 , if the applicant’s home state awards nonresident licenses to residents of this state on the same basis.
In order to carry out the provisions of subsection (a) of this section, the commissioner may negotiate and enter into reciprocal arrangements with the insurance supervisory official of any other state or province.

History. Laws 2001, ch. 201, § 1.

§ 26-9-216. Reporting of actions.

A resident or nonresident insurance producer shall report to the commissioner any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within thirty (30) days of the final disposition of the matter. This report shall include a copy of the order, consent to order or other relevant legal documents.
Within thirty (30) days of the initial pretrial hearing date, a resident or nonresident insurance producer shall report to the commissioner any criminal prosecution of the producer taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing and any other relevant legal documents.

History. Laws 2001, ch. 201, § 1.

§ 26-9-217. Regulations; limitation.

The commissioner may, in accordance with W.S. 26-2-110 promulgate reasonable regulations as are necessary or proper to carry out the purposes of this chapter.
Repealed by Laws 2007, ch. 43 § 1.

History. Laws 2001, ch. 201, § 1; 2007, ch. 43, § 1.

§ 26-9-218. [Repealed.]

Repealed by Laws 2011, ch. 60, § 3.

Editor's notes. —

This section which derived from Laws 2001, ch. 201, § 1, 2004, ch. 7, § 1, related to service representatives.

Laws 2011, ch. 60, § 4, makes the act effective July 1, 2011.

§ 26-9-219. Adjuster's license; exception; notification.

Application for license as an adjuster shall be made to the commissioner on forms he prescribes and furnishes. The commissioner shall issue the license as to qualified individuals upon payment of the license application fee stated in W.S. 26-4-101 . An adjuster may qualify for a license in one (1) or more of the following lines of insurance:
1. Property insurance, as defined in W.S. 26-5-104 ;
2. Casualty insurance, as defined in W.S. 26-5-106 ;
3. Crop insurance, as defined in W.S. 26-9-202(a)(xxi).
To be licensed as an adjuster the applicant shall:
1. Be an adult;
2. Be a resident of Wyoming or of another state which permits residents of Wyoming to act as adjusters in that state;
3. Be a full-time salaried employee of a licensed adjuster or a graduate of a recognized law school, or have had experience or special education or training in the handling of loss claims under insurance contracts of sufficient duration and extent to make him competent to fulfill the responsibilities of an adjuster;
4. Be trustworthy and of good reputation;
5. Have and maintain an office accessible to the public and keep therein the usual and customary records in paper, electronic or other appropriate format, pertaining to transactions under the license;
6. Within one (1) year prior to submitting the application for the license, have taken and passed a written examination in a form prescribed by the commissioner. The commissioner may waive written examination of a nonresident applicant if the applicant is licensed as an adjuster in his home state, is in good standing in his home state and his home state grants this state’s resident adjusters a similar privilege; and
7. If being licensed as a resident, have provided the commissioner fingerprints and other information and permission necessary for a criminal history record background check as provided in W.S. 7-19-201(a). The cost of the criminal history record background check shall be paid by the applicant.
A Wyoming adjuster’s license is required of any adjuster who by physical appearance or through electronic or other means, acts in this state on behalf of an insurer for the purpose of investigating or making adjustment of a particular loss under an insurance policy unless the loss is of an unusual, uncommon or unique nature requiring special expertise or knowledge not readily available among adjusters licensed in this state, or for the adjustment of a series of losses resulting from a catastrophe common to those losses. Any insurer on whose behalf an adjuster who is not licensed in Wyoming investigates or adjusts a loss in this state, whether by physical appearance or through electronic or other means, shall notify the commissioner of such action prior to the unlicensed adjuster acting in this state.
If the state in which the adjuster maintains his principal place of residency or principal place of business does not license adjusters for the line of authority being applied for, the adjuster shall designate his home state, which may be any state in which the adjuster is licensed and in good standing and which state meets licensure requirements similar to the requirements of the state of Wyoming as determined by the commissioner.
For purposes of this section, “home state” means the District of Columbia and any state or territory of the United States in which an adjuster maintains his principal place of residence or business and is licensed to act as a resident adjuster.
This section shall not apply to an individual who:
1. Collects claim information from, or furnishes claim information to, insureds or claimants for portable electronic device insurance claims;
2. Conducts portable electronic device insurance claim data entry, including entering data into an automated claims adjudication system; and
3. Is supervised by a licensed adjuster, or licensed agent who is exempt from licensure as an adjuster pursuant to W.S. 26-1-102(a)(i). The agent or adjuster shall not supervise more than twenty-five (25) persons who are exempted under this subsection.
For purposes of subsection (f) of this section:
1. “Automated claims adjudication system” means a preprogrammed computer system which is designed for the collection, data entry, calculation and initial resolution of portable electronic device insurance claims;
2. “Portable electronic device insurance claim” means a claim filed by an insured or claimant to receive benefits under a portable electronic device insurance contract for an electronic device and its accessories that are portable in nature and which must be easily carried or conveyed by hand.

History. Laws 1967, ch. 136, § 195; W.S. 1957, § 26.1-195; Laws 1973, ch. 213, § 2; W.S. 1977, § 26-9-143; Laws 1983, ch. 190, § 1; 1985, ch. 63, § 1; 1993, ch. 97, § 1; 2000, ch. 19, § 1; Rev. W.S. 1977, § 26-9-135; Laws 2001, ch. 201, § 3; 2011, ch. 55, § 1; ch. 60, § 2; 2015 ch. 15, § 1, effective July 1, 2015; 2017 ch. 15, § 2, effective July 1, 2017.

The 2011 amendments. —

The first 2011 amendment, by ch. 55 § 1, effective July 1, 2011, added (b)(vii), and made related changes.

The second 2011 amendment, by ch. 60 § 2, effective July 1, 2011, added (d) and (e).

While neither amendment gave effect to the other, both have been given effect in this section as set out above.

The 2015 amendment, effective July 1, 2015, added (f) and (g).

The 2017 amendment, effective July 1, 2017, at the end of the introductory language of (a), inserted “An adjuster may qualify for a license in one (1) or more of the following lines of insurance:”; and added (a)(i) through (a)(iii).

Editor's notes. —

This section was formerly codified as § 26-9-135.

§ 26-9-220. Insurance consultants.

No person shall be held out to the public as an insurance consultant for hire unless a license as such has been issued in accordance with this section.
An application for a license to act as an insurance consultant for hire shall be made to the commissioner on forms he prescribes. The commissioner shall require that the applicant, within one (1) year prior to submitting the application for the license, have taken and passed a written examination in a form prescribed by the commissioner. The commissioner may waive written examination of a nonresident applicant if the applicant is licensed as a consultant in his home state, is in good standing in his home state and his home state grants this state’s resident consultants a similar privilege. The commissioner may conduct investigations concerning the applicant’s qualifications, residence, business affiliations and any other matter he deems necessary to determine compliance with this chapter or for the public’s protection. The applicant shall provide the commissioner fingerprints and other information and permission necessary for a criminal history record background check as provided in W.S. 7-19-201(a). The cost of the criminal history record background check shall be paid by the applicant.
The commissioner shall collect an application fee, a fee for the license, if issued, and a renewal fee, as provided in W.S. 26-4-101 . No license is valid for longer than twenty-four (24) months. A license may be renewed in the same manner as an insurance producer’s license.
All provisions of this chapter apply to licensees under this section to the extent that they are not in conflict with this section.
This section does not apply to licensed attorneys.
An insurance producer who is also licensed as a consultant under this section shall not act in the dual capacity of an insurance producer and a consultant in the same insurance transaction.

History. Laws 1979, ch. 162, § 1; W.S. 1977, § 26-9-147; Laws 1983, ch. 190, § 1; 1993, ch. 97, § 1; 2000, ch. 19, § 1; Rev. W.S. 1977, § 26-9-139; Laws 2001, ch. 201, § 3; 2004, ch. 7, § 1; 2011, ch. 55, § 1.

The 2004 amendment, effective July 1, 2004, in (c), substituted “an application fee” for “a nonrefundable application fee,” “a renewal fee” for “an annual renewal fee,” and “twenty-four (24) months” for “twelve (12) months”; and deleted “annually” following “may be renewed.”

The 2011 amendment, effective July 1, 2011, in (b), added the present last two sentences.

Editor's notes. —

This section was formerly codified as § 26-9-139.

§ 26-9-221. Limited license. [Repealed]

History. Laws 1987, ch. 17, § 1; 1993, ch. 97, § 1; W.S. 1977, § 26-9-140; Laws 2001, ch. 201, § 3; 2004, ch. 7, § 1; repealed by 2017 ch. 15, § 3, effective July 1, 2017.

§ 26-9-222. [Repealed.]

Repealed by Laws 2011, ch. 60, § 3.

Editor's notes. —

This section which derived from Laws 1991, ch. 108, § 1, W.S. 1977, § 26-9-141, Rev. W.S. 1977, § 26-9-142, Laws 2001, ch. 201, § 3, related to insurance marketers, requirements, penalties, and rulemaking authority.

Laws 2011, ch. 60, § 4, makes the act effective July 1, 2011.

§ 26-9-223. [Repealed.]

Repealed by Laws 2004, ch. 7, § 2.

Editor's notes. —

This section, which derived from Laws 1967, ch. 136, § 184, required that brokers file a bond.

Laws 2004, ch. 7, § 4, makes the act effective July 1, 2004.

§ 26-9-224. Scope of broker's authority; broker's commissions.

Any insurance producer acting in the capacity of a broker is not an agent or other representative of an insurer and does not have power by his own acts to obligate the insurer upon any risk or by any insurance transaction.
An insurer or insurance producer has the right to pay to an insurance producer acting in the capacity of a broker and licensed under this chapter the customary commissions upon insurance placed through the producer acting as a broker.

History. Laws 1967, ch. 136, § 185; W.S. 1957, § 26.1-185; W.S. 1977, § 26-9-133; Laws 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-125; Laws 2001, ch. 201, § 3.

Editor's notes. —

This section was formerly codified as § 26-9-125.

§ 26-9-225. Broker and agent license combinations.

The sole relationship between an insurance producer acting in the capacity of a broker and an insurer as to which he is then appointed as an agent, as to transactions arising during the existence of that agency appointment, is that of insurer and agent and not that of insurer and broker.

History. Laws 1967, ch. 136, § 186; W.S. 1957, § 26.1-186; W.S. 1977, § 26-9-134 ; Laws 1981, ch. 72, § 1; 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-126; Laws 2001, ch. 201, § 3.

Editor's notes. —

This section was formerly codified as § 26-9-126.

§ 26-9-226. “Controlled business” restrictions.

The commissioner shall not grant, renew, continue or permit to exist any license as an insurance producer if he finds that the license has been or is being used principally for the purpose of writing “controlled business” as follows:
1. Insurance on his own interests or those of his family or of his employer; or
2. Insurance or annuity contracts covering himself or members of his family, or the officers, directors, stockholders, partners or employees of a partnership, association or corporation of which he or a member of his family is an officer, director, stockholder, partner, associate or employee.
A license is deemed to have been or intended to be used principally for the purpose of writing controlled business if the commissioner finds that during any twelve (12) month period the aggregate commissions earned from controlled business as specified in this section have exceeded or probably will exceed the aggregate commissions to be earned on other business written by an applicant or licensee during the same period.
If commissions on controlled business transacted by an insurance producer payable in one (1) calendar year exceed the commissions on other insurance business transacted by the licensee and payable in the same year, the receipt of the excess commissions is an unlawful rebate.
This section does not apply to:
1. Insurance of the interest of:
  1. A motor vehicle sales or financing agency in a motor vehicle it sells or finances;
  2. A real property mortgagee in the mortgaged property.
2. Credit life insurance and credit disability insurance.

History. Laws 1967, ch. 136, § 163; W.S. 1957, § 26.1-163; W.S. 1977, § 26-9-111; Laws 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-104 ; Laws 2001, ch. 201, § 3.

Editor's notes. —

This section was formerly codified as § 26-9-104 .

§ 26-9-227. Authority under license to transact business; nontransferability.

Any licensee under this chapter may transact business as authorized by the license throughout the state of Wyoming. No city, county or other political subdivision of this state shall require any other or further permit, registration or authority for transactions by the licensee therein.

History. Laws 1967, ch. 136, § 176; W.S. 1957, § 26.1-176; W.S. 1977, § 26-9-124 ; Laws 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-116 ; Laws 2001, ch. 201, § 3.

Editor's notes. —

This section was formerly codified as § 26-9-116 .

§ 26-9-228. Place of business of licensees; display of licenses; records.

Each resident insurance producer shall have and maintain in this state a place of business accessible to the public and in which the licensee principally conducts transactions under his license. The address of the place shall appear upon the license, and the licensee shall promptly notify the commissioner in writing of any change thereof as provided by W.S. 26-9-207(f). Nothing in this section prohibits maintenance of a place of business in the licensee’s residence in this state.
The licenses of an insurance producer under this chapter shall be conspicuously displayed in the place of business in a part thereof customarily open to the public.
The insurance producer shall keep at his place of business a complete record of transactions under his license. The record shall show, as to each insurance policy or contract placed by or through the licensee, the names of the insurer and insured, the number, expiration date of, premium payable as to the policy or contract and any other information the commissioner reasonably requires. The insurance producer shall keep the record available for inspection for a period of at least three (3) years after completion of the transactions.
The requirements of subsection (c) of this section are satisfied if the records specified in this section may be obtained immediately from a central storage place, or elsewhere by on line computer terminals located at the licensee’s place of business.

History. Laws 1967, ch. 136, § 189; W.S. 1957, § 26.1-189; Laws 1977, ch. 49, § 2; W.S. 1977, § 26-9-137; Laws 1983, ch. 190, § 1; 1995, ch. 108, § 1; 2000, ch. 19, § 1; Rev. W.S. 1977, § 26-9-129 ; Laws 2001, ch. 201, § 3.

Editor's notes. —

This section was formerly codified as § 26-9-129 .

§ 26-9-229. Reporting and accounting for premiums.

Any premiums or return premiums received by an insurance producer are trust funds received in a fiduciary capacity, and the producer, in the regular course of business, shall account for and pay the funds to the insured, insurer or insurance producer entitled thereto.
The licensee shall establish a separate trust account for premiums specified in subsection (a) of this section and shall not use the account for or commingle it with his own funds. He shall maintain an accurate record and itemization of the funds deposited in the account.
Any insurance producer who diverts or appropriates any funds, to which he is not lawfully entitled, to his own use is guilty of embezzlement and upon conviction shall be punished as provided by law.
A limited lines producer for specialty limited lines shall not be required to treat monies collected from customers purchasing additional specialty limited lines insurance as funds received in a fiduciary capacity, provided that:
1. The charges for specialty limited lines insurance coverage are itemized and ancillary to the principal business transaction; and
2. The insurer has consented in writing, signed by an officer of the insurer, that premiums need not be segregated from funds received by the producer for the principal business transaction.

History. Laws 1967, ch. 136, § 190; W.S. 1957, § 26.1-190; Laws 1977, ch. 49, § 1; W.S. 1977, § 26-9-138 ; Laws 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-130; Laws 2001, ch. 201, § 3; 2013 ch. 123, § 2, effective July 1, 2013.

The 2013 amendment, effective July 1, 2013, added (d).

Editor's notes. —

This section was formerly codified as § 26-9-130.

Personal liability of agent. —

Where defendant insurance agent sold plaintiff insurance coverage for plaintiff's aircraft, defendant had a duty to see that the funds solicited from plaintiff were applied to the use for which they were secured. Having so failed, he must personally account for his actions, and failing to show reasonable exercise of such duty, his personal liability is established. He authored and executed the plan which led to his own misfortune, and he cannot be heard to complain that someone else, i.e., the corporations over which he had control, should be made to respond. Preston v. Natrona Serv., 489 P.2d 622, 1971 Wyo. LEXIS 255 (Wyo. 1971) (decided under prior law).

Measure of damages. —

Where there is no evidence of greater loss sustained by the insured, the measure of damages has been held to be the premiums or assessments paid by the insured with interest thereon. Preston v. Natrona Serv., 489 P.2d 622, 1971 Wyo. LEXIS 255 (Wyo. 1971) (decided under prior law).

Quoted in

United States v. Schwab, 88 F. Supp. 2d 1275, 2000 U.S. Dist. LEXIS 2903 (D. Wyo. 2000).

Am. Jur. 2d, ALR and C.J.S. references. —

Revocation or suspension of insurance agent's license for withholding or misappropriation of premiums, 17 ALR4th 1106.

§ 26-9-230. Service of process on nonresident producers.

Application for and acceptance of a license as a nonresident insurance producer or surplus lines broker constitutes irrevocable appointment of the commissioner as the attorney of the licensee for the acceptance of service of process issued in this state in any action or proceeding against the licensee arising out of the licensing or any transactions under the license.
Duplicate copies of process shall be served upon the commissioner or other person in apparent charge of his office during his absence, accompanied by payment to the commissioner a process fee as provided in W.S. 26-4-101 . Upon receiving the service the commissioner shall promptly forward a copy thereof by registered or certified mail, with return receipt requested, to the nonresident licensee at his business address last of record with the commissioner.
Process served upon the commissioner and copy thereof forwarded as provided in this section for all purposes constitutes personal service thereof upon the licensee.

History. Laws 1967, ch. 136, § 194; W.S. 1957, § 26.1-194; W.S. 1977, § 26-9-142; Laws 1981, ch. 72, § 1; 1983, ch. 190, § 1; 2000, ch. 19, § 1; ch. 30, § 1; Rev. W.S. 1977, § 26-9-134 ; Laws 2001, ch. 201, § 3; 2012, ch. 37, § 2.

Editor's notes. —

This section was formerly codified as § 26-9-134 .

Cross references. —

For provisions as to appointment of the commissioner as attorney for acceptance of service of process, see §§ 26-3-121 , 26-3-122 .

The 2012 amendment, added “or surplus lines broker” in (a).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-9-231. Continuing education.

Resident insurance producers, title agents licensed pursuant to W.S. 26-23-318 , adjusters, nonresident adjusters not exempted under subsection (f) of this section, and other resident persons required to be licensed under this chapter shall complete twenty-four (24) classroom hours of continuing education within each two (2) year licensing period. Of the twenty-four (24) hours at least three (3) shall relate to ethical requirements. The requirements of this section do not apply to nonresident insurance producers, those persons who hold licenses for any kinds of insurance for which an examination is not required, nor shall they apply to any such limited or restricted licenses as the commissioner may exempt.
Any person teaching any approved continuing education course or lecturing at any approved seminar shall qualify for the same number of classroom hours granted to the person taking the course or seminar.
The commissioner may promulgate rules and regulations necessary to carry out the purposes of this section.
Repealed by Laws 2004, ch. 7, § 2.
For good cause shown, the commissioner may grant an extension of up to one (1) year to complete the required continuing education.
Every person subject to this section shall furnish, in a form satisfactory to the commissioner, written certification as to the courses, programs or seminars of instruction taken by that person. The certification shall be executed by or on behalf of the sponsoring organization within a fifteen (15) day period following the course, program or seminar. A nonresident adjuster having met the continuing education requirements in his home state is exempt from the provisions of this section. A nonresident adjuster not licensed in his home state is subject to the requirements of this section.
The commissioner is authorized to assess every person subject to this section a fee of thirty dollars ($30.00) in addition to the license fee and payable at the time of license renewal, for the support of continuing education. The fee for support of continuing education shall be deposited in the general fund.
Any person failing to submit proof required by rule of the commissioner of having met the requirements of this section and who has not been granted an extension of time within which to comply shall not have his license renewed until the person demonstrates to the satisfaction of the commissioner that he has complied with all requirements of this section.

History. Laws 1989, ch. 166, § 1; 1995, ch. 17, § 1; 2000, ch. 19, § 1; ch. 30, § 1; W.S. 1977, § 26-9-141; Laws 2001, ch. 201, § 3; 2004, ch. 7, §§ 1, 2; 2011, ch. 60, § 2; 2017 ch. 15, § 2, effective July 1, 2017.

Editor's notes. —

This section was formerly codified as § 26-9-141.

The 2004 amendment, effective July 1, 2004, rewrote (a), changing continuing education requirements as specified; repealed subsection (d), which formerly read, “Persons licensed between January 1 and June 30 of any year shall complete ten (10) hours of continuing education for that year. Persons licensed between July 1 and December 31 of any year shall complete five (5) hours of continuing education for that year”; in (e), deleted the former first sentence, which read, “Up to five (5) classroom hours may be carried forward to the next year”; in (g), substituted “fee” or “license fee” for “annual fee” and “annual license fee,” and “thirty dollars ($30.00)” for “fifteen dollars ($15.00),” and inserted “and payable at the time of license renewal”; and rewrote (h), which formerly read, “Any person failing to meet the requirements of this section and who has not been granted an extension of time within which to comply, or who has submitted to the commissioner a false or fraudulent certificate of compliance shall, after notice and opportunity for hearing, be subject to the suspension of all licenses issued until the person demonstrates to the satisfaction of the commissioner that he has complied with all requirements of this section.”

The 2011 amendment, effective July 1, 2011, in (a), deleted “service representatives” after “W.S. 26-23-318 ”; and in (f), substituted “having met the continuing education requirements in his home state” for “required to complete continuing education in his state of domicile” in the second sentence, and substituted “not licensed in his home state” for “domiciled in a state without a continuing education requirement” in the last sentence.

The 2017 amendment, effective July 1, 2017, in the middle of (f), substituted “fifteen (15)” for “sixty (60).”

§ 26-9-232. Return of license to commissioner upon expiration; lost or stolen licenses.

Any license issued under this code [title 26], although issued and delivered to the licensee or his employer, is at all times the property of this state. Upon expiration, termination, suspension or revocation of any license, the licensee or other person having possession or custody of the license shall immediately deliver it to the commissioner either by personal delivery or by mail.
As to any license lost, stolen or destroyed while in the possession of any licensee or other person, the commissioner may accept instead of return of the license, the affidavit of the licensee or other person responsible for or involved in the safekeeping of the license, concerning the facts of the loss, theft or destruction.

History. Laws 1967, ch. 136, § 198; W.S. 1957, § 26.1-198; W.S. 1977, § 26-9-146; Laws 1983, ch. 190, § 1; Rev. W.S. 1977, § 26-9-138 ; Laws 2001, ch. 201, § 4.

Editor's notes. —

This section was formerly codified as § 26-9-138 .

§ 26-9-233. Assumed names.

An insurance producer doing business under any name other than the producer’s legal name is required to notify the insurance commissioner prior to using the assumed name.

History. Laws 2011, ch. 60, § 1.

Effective date. —

Laws 2011, ch. 60, § 4, makes the act effective July 1, 2011.

§ 26-9-234. Specialty limited lines producer license.

The commissioner may issue to an applicant a specialty limited lines producer license for the sale, solicitation or delivery of specialty lines insurance where the sale of the product is ancillary to the business of the person offering the product.
Application under this section shall be made in accordance with W.S. 26-9-206 , except business entity applicants applying for a specialty limited lines producer license shall be exempt from providing shareholders, officers and directors information. However, if the business entity derives more than fifty percent (50%) of its revenue from the sale of insurance, information shall be provided for all officers, directors and shareholders of record that have beneficial ownership of ten percent (10%) or more of any class of securities, who are subject to 15 U.S.C. 78p or subsequent similar federal enactment.
An examination is not required for issuance of a specialty limited lines producer license nor is a licensee required to comply with continuing education requirements of W.S 26-9-231 .
A business entity licensed as a specialty limited lines producer shall keep a register of each location at which insurance is offered on the licensed business entity’s behalf.
A business entity licensed as a specialty limited lines producer for specialty limited lines insurance shall submit the register required in subsection (d) of this section within ten (10) days upon request of the commissioner. The registry shall be open to inspection and examination by the commissioner.
A specialty limited lines producer shall not advertise, represent or otherwise hold out the license holder or an endorsee of the license holder as an agent licensed under this chapter unless the entity or individual holds the applicable license.
An endorsee of the specialty limited lines producer that offers and disseminates specialty limited lines insurance on behalf of the licensed business entity and under the direction of a specialty limited lines insurance producer is not required to be individually licensed and is eligible to offer or disseminate specialty limited lines insurance if all of the following apply:
1. The endorsee is eighteen (18) years of age or older;
2. The endorsee shall have received a program of instruction or training prior to receiving permission to operate on behalf of the business entity and under the direction of the designated responsible producer. The training materials shall be made available to the commissioner upon request; and
3. The endorsee’s compensation shall not be based primarily on the placement of the insurance product but the endorsee may receive compensation for activities under the specialty limited lines license which is incidental to their overall compensation.
An endorsee’s authorization to offer or disseminate specialty limited lines insurance shall expire when the endorsee’s employment with or representation of the licensed entity is terminated.
Individuals who offer or disseminate specialty limited lines insurance whose compensation is primarily dependent on the placement of the insurance product shall obtain a specialty limited lines insurance producer license as set forth in this section.
Charges for specialty limited lines insurance may be billed and collected by a specialty limited lines producer. Any charge to the covered person for coverage that is not included in the cost associated with the purchase or lease of the covered product or related services shall be separately itemized on the covered person’s bill. If the insurance coverage is included with the purchase or lease of the covered product or related services the specialty limited lines producer shall clearly and conspicuously disclose to the covered person that the insurance coverage is included with the covered product or related services. Specialty limited lines producers that are billing and collecting these charges shall not be required to maintain these funds in a segregated account provided that the specialty limited lines producer is authorized by the insurer to hold these funds in an alternative manner. Specialty limited lines producers may receive compensation for billing and collection services.
The commissioner may adopt rules necessary to implement this section.
To the extent that they are not in conflict with this section, all provisions of the Wyoming Insurance Code apply to licensees under this section.

History. 2013 ch. 123, § 1, effective July 1, 2013.

Editor's notes. —

There is no subsection (i) or (l) in this section as it appears in the printed acts.

Effective dates. —

Laws 2013, ch. 123, § 4, makes the act effective July 1, 2013.

§ 26-9-235. Licensing examination review panel.

The commissioner shall review the procedures for administering examinations required by this chapter no less than every three (3) years. The review shall include consideration of employing outside testing services as authorized by W.S. 26-9-205(b).
The commissioner shall establish a review panel consisting of six (6) licensed insurance producers or adjusters to assist in the administration of duties under subsection (a) of this section. Each licensed insurance producer or adjuster shall have been licensed in this state for at least three (3) years immediately prior to appointment. One (1) shall be a life and accident and health producer, one (1) a property and casualty producer, one (1) the producer of a domestic insurer, one (1) a title insurance agent, one (1) a limited lines producer and one (1) an insurance adjuster.
Panel members shall serve four (4) year terms, except that of the initial review panel three (3) members shall serve a term of two (2) years and three (3) members for four (4) years. Initial terms shall commence on August 1, 2017. Any member of the review panel may be removed as provided under W.S. 9-1-202 . Vacancies shall be filled by the commissioner for the unexpired term.
The review panel shall provide the following assistance to the commissioner:
1. Review general policy concerning the scope, contents, procedure and conduct of examinations to be given by the commissioner for licenses for insurance producers and adjusters;
2. Review the questions comprising each particular examination;
3. Review the scope and contents of material furnished examination applicants by the commissioner under W.S. 26-9-205 for the purpose of preparing for an examination;
4. Review the procedure to be followed in the conduct of examinations, including but not limited to application for examination, frequency and place of examinations and monitoring and safeguarding of examination questions and papers;
5. Review the value to be allowed for a correct answer to each question in examination grading;
6. Make any recommendations to the commissioner it deems appropriate, including recommendations regarding the administration of the examination requirements for licensing.
The commissioner, upon application by the panel members, is authorized to reimburse each panel member per diem and mileage expenses, as allowed to state employees, for each day they are actually engaged in the discharge of the panel’s duty.

History. 2017 ch. 9, § 1, effective July 1, 2017.

Effective date. —

Laws 2017, ch. 9, § 5, makes the act effective July 1, 2017.

Chapter 10 State Board of Insurance Agent Examiners

§ 26-10-101. “Board” defined. [Repealed]

History. Laws 1967, ch. 136, § 199; W.S. 1957, § 26.1-199; Laws 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-102. Composition; appointment; qualifications and terms of members; ex officio member; removal; vacancies. [Repealed]

History. Laws 1961, ch. 234, §§ 1, 2; W.S. 1957, § 26.1-200; Laws 1967, ch. 136, § 200; 1979, ch. 17, § 2; 1983, ch. 190, § 1; 1987, ch. 175, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-103. Officers; meetings; quorum. [Repealed]

History. Laws 1961, ch. 234, § 3; W.S. 1957, § 26.1-201; Laws 1967, ch. 136, § 201; 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-104. Powers and authority of board; examinations; records. [Repealed]

History. Laws 1967, ch. 136, § 202; W.S. 1957, § 26.1-202; Laws 1983, ch. 190, § 1; 1987, ch. 36, § 1; 2001, ch. 201, § 2; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-105. Commissioner to cooperate with board. [Repealed]

History. Laws 1967, ch. 136, § 203; W.S. 1957, § 26.1-203; Laws 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-106. Compensation and expenses. [Repealed]

History. Laws 1961, ch. 234, § 7; W.S. 1957, § 26.1-204; Laws 1967, ch. 136, § 204; 1973, ch. 179, § 1; ch. 215, § 1; ch. 245, § 3; 1975, ch. 165, § 1; 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-107. Account; disbursement. [Repealed]

History. Laws 1961, ch. 234, § 7; W.S. 1957, § 26.1-205; Laws 1967, ch. 136, § 205; 1973, ch. 245, § 3; 1975, ch. 164, § 1; 1983, ch. 190, § 1; 1987, ch. 36, § 1; 1993, ch. 97, § 1; 2005, ch. 231, § 1; 2015 ch. 12, § 1, effective July 1, 2015; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-108. Board's accounts and report. [Repealed]

History. Laws 1961, ch. 234, § 7; W.S. 1957, § 26.1-206; Laws 1967, ch. 136, § 206; 1973, ch. 215, § 1; 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

§ 26-10-109. Judicial review. [Repealed]

History. Laws 1961, ch. 234, § 9; W.S. 1957, § 26.1-207; Laws 1967, ch. 136, § 207; 1983, ch. 190, § 1; repealed by 2017 ch. 9, § 3, effective July 1, 2017.

Chapter 11 Nonadmitted Insurance

§ 26-11-101. Short title.

This chapter constitutes and may be cited as the “Nonadmitted Insurance Law”.

History. Laws 1967, ch. 136, § 208; W.S. 1957, § 26.1-208; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2.

The 2012 amendment, substituted “ ‘Nonadmitted Insurance Law’ ” for “ ‘Surplus Line Law’. ”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-102. Home state regulation of nonadmitted insurance; exemptions.

This chapter does not apply to reinsurance or to the following insurances when placed by licensed insurance producers or surplus lines brokers of this state or when procured directly by an insured from a nonadmitted insurer:
1. Wet marine and transportation insurance;
2. Repealed by Laws 2020, ch. 45, § 2.
3. Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in those operations;
4. Insurance on aircraft owned or operated by manufacturers of aircraft, or on aircraft operated in commercial interstate flight, or cargo of that aircraft, or against liability, other than worker’s compensation and employer’s liability, arising out of the ownership, maintenance or use of that aircraft.
The placement of nonadmitted insurance shall be subject to the statutory and regulatory requirements solely of the insured’s home state.
This section shall not be construed to preempt any state law, rule or regulation that restricts the placement of workers’ compensation insurance or excess insurance for self-funded workers’ compensation plans with a nonadmitted insurer.

History. Laws 1967, ch. 136, § 209; W.S. 1957, § 26.1-209; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, §§ 1, 2, effective July 1, 2020.

The 2012 amendment, added “or when procured directly by an insured from a nonadmitted insurer” in the introductory language of (a); and added (b) and (c).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in the introductory language of (a), substituted “licensed insurance producers or surplus lines brokers” for “licensed agents or surplus line brokers”; and repealed (a)(ii), which read “Insurance on subjects located, resident or to be performed wholly outside of this state, or on vehicles or aircraft owned and principally garaged outside this state.”

§ 26-11-103. Definitions.

As used in this chapter:
1. “Admitted insurer” means an insurer authorized to transact the business of insurance in this state;
2. Repealed by Laws 2020, ch. 45, § 2.
3. “Export” means to place surplus lines insurance with a nonadmitted insurer;
4. “Home state” means as follows:
  1. Except as provided in subparagraphs (B) and (C) of this paragraph, “home state” means, with respect to an insured:
    1. The state in which an insured maintains its principal place of business or, in the case of an individual, the individual’s principal residence; or
    2. If one hundred percent (100%) of the insured risk is located out of the state referred to in subdivision (I) of this subparagraph, the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
  2. If more than one (1) insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term “home state” means the home state, as determined pursuant to subparagraph (A) of this paragraph, of the member of the affiliated group that has the largest percentage of premium attributed to it under the insurance contract;
  3. When a group policyholder pays one hundred percent (100%) of the premium from its own funds, the term “home state” means the home state, as determined pursuant to subparagraph (A) of this paragraph, of the group policyholder. When a group policyholder does not pay one hundred percent (100%) of the premium from its own funds, the term “home state” means the home state, as determined pursuant to subparagraph (A) of this paragraph, of the group member.
5. “Nonadmitted insurance” means any property and casualty, accident and health or sickness or disability insurance permitted to be placed directly or through a surplus lines broker with a nonadmitted insurer eligible to accept the insurance;
6. “Reciprocal state” means a state that has:
  1. Entered into a nonadmitted insurance compact; or
  2. Otherwise adopted the allocation schedule and reporting forms prescribed by a multistate agreement for nonadmitted insurance.
7. “Recognized financial institution” means an institution that is organized or licensed under the laws of the United States or any state and is insured by the federal deposit insurance corporation;
8. “Affiliate” means with respect to an insured, any entity that controls, is controlled by or is under common control with the insured;
9. “Affiliated group” means any group of entities that are all affiliated;
10. “Business entity” means a corporation, association, partnership, limited liability company, limited liability partnership or any other legal entity;
11. “Control” means an entity has “control” over another entity if:
  1. The entity directly or indirectly or acting through one (1) or more other persons owns, controls or has the power to vote twenty-five percent (25%) or more of any class of voting securities of the entity; or
  2. The entity controls in any manner the election of a majority of directors or trustees of the other entity.
12. “Independently procured insurance” means insurance procured directly by an insured from an eligible nonadmitted insurer;
13. “Kind of insurance” means one (1) of the types of insurance required to be reported in the annual statement which is filed with the commissioner by admitted insurers;
14. “Nonadmitted insurer” means with respect to a state, an insurer not authorized to transact the business of insurance in the state, but does not include a health maintenance organization or a risk retention group as that term is defined in section 2(a)(4) of the Liability Risk Retention Act of 1986, 15 U.S.C. 3901(a)(4);
15. “Premium tax” means with respect to surplus lines or independently procured insurance coverage, any tax, fee, assessment or other charge imposed by a government entity directly or indirectly based on any payment made as consideration for an insurance contract for such insurance, including premium deposits, assessments, registration fees and any other compensation given in consideration for a contract of insurance;
16. “Principal place of business” means with respect to determining the home state of the insured:
  1. The state where the insured maintains its headquarters and where the insured’s high-level officers direct, control and coordinate the business’ activities;
  2. If the insured’s high-level officers direct, control and coordinate the business’ activities in more than one (1) state, the state in which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated; or
  3. If the insured maintains its headquarters or the insured’s high-level officers direct, control and coordinate the business activities outside of any state, the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
17. “Principal place of residence” means with respect to determining the home state of the insured:
  1. The state where the insured resides for the greatest number of days during a calendar year; or
  2. If the insured’s principal residence is located outside any state, the state to which the greatest percentage of the insured’s taxable premium for that insurance contract is allocated.
18. “Qualified risk manager” means with respect to a policyholder of commercial insurance, a person who meets all of the requirements set forth by department rule and regulation, which requirements shall be in compliance with the Nonadmitted and Reinsurance Reform Act of 2010 or subsequent similar federal enactment;
19. “Surplus lines broker” means an individual or business entity which is licensed in a state to sell, solicit or negotiate insurance with nonadmitted insurers;
20. “Type of insurance” means coverage afforded under the particular policy that is being placed;
21. “Wet marine and transportation insurance” means:
  1. Insurance upon vessels, crafts, hulls and other interests in them or with relation to them;
  2. Insurance of marine builder’s risks, marine war risks and contracts of marine protection and indemnity insurance;
  3. Insurance of freight and disbursements pertaining to a subject of insurance within the scope of this subsection; and
  4. Insurance of personal property and interests therein, in the course of exportation from or importation into any country, or in the course of transportation coastwise or on inland waters, including transportation by land, water or air from point of origin to final destination, in connection with any and all risks or perils of navigation, transit or transportation, and while being prepared for and while awaiting shipment, and during any incidental delays, transshipment or reshipment, provided, however, that insurance of personal property and interests therein shall not be considered wet marine and transportation insurance if the property has:
    1. Been transported solely by land;
    2. Reached its final destination as specified in the bill of lading or other shipping document; or
    3. The insured no longer has an insurable interest in the property.

History. Laws 1967, ch. 136, § 210; W.S. 1957, § 26.1-210; Laws 1983, ch. 190, § 1; 1991, ch. 97, § 1; 2011, ch. 103, § 2; 2012, ch. 37, § 2; 2020 ch. 45, §§ 1, 2, effective July 1, 2020.

The 2011 amendment, effective July 1, 2011, in (a), added (a)(i), redesignated former (a)(i) and (a)(ii) as present (a)(ii) and (a)(iii), added (a)(iv) through (a)(vi), and redesignated former (a)(iii) as (a)(vii).

The 2012 amendment, substituted “surplus lines insurance with a nonadmitted insurer” for “in an unauthorized insurer under this surplus line law insurance covering a subject of insurance resident, located or to be performed in Wyoming” in (a)(iii); substituted “subparagraphs (B) and (C)” in the introductory language of (a)(iv)(A); added (a)(iv)(C); substituted “permitted to be placed directly or through a surplus lines broker with a nonadmitted insurer eligible to accept the insurance” for “not licensed to do the business of insurance in this state” in (a)(v); and added (a)(viii) through (xxi).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (a)(i) substituted “insurer authorized to transact” for “insurer licensed to engage in”; repealed (a)(ii), which read “ ‘Broker’ means a surplus line broker licensed as such under this chapter”; in (a)(v) added “accident and health or sickness or disability” following “casualty”; in (a)(xiv) substituted “not authorized to transact” for “not licensed to engage in” and added “a health maintenance organization or” preceding “a risk retention group”; in (a)(xviii) added “or subsequent similar federal enactment” at the end; and in (a)(xix) deleted “on properties, risks or exposures located or to be performed in a state” following “negotiate insurance.”

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-11-104. Conditions for export.

If certain insurance coverages cannot be procured from admitted insurers, those coverages, designated in this chapter as “surplus lines”, may be procured from nonadmitted insurers, subject to the following conditions:
1. The insurance shall be procured through a licensed surplus lines broker;
2. The full amount of insurance required is not procurable, after diligent effort has been made by the insurance producer to do so, from among the admitted insurers authorized to transact and actually writing that kind and type of insurance in this state, and the amount of insurance exported shall be only the excess over the amount procurable from admitted insurers. The surplus lines broker shall verify that a properly conducted diligent effort search was performed and documented as prescribed by the commissioner;
3. The insurance shall not be exported for the purpose of securing advantages either as to:
  1. A lower premium rate than would be accepted by an admitted insurer; or
  2. Terms of the insurance contract.
4. The insurer is an eligible nonadmitted insurer;
5. The insurer is authorized to write the kind of insurance in its domiciliary jurisdiction;
6. All other requirements of this chapter are met.
A surplus lines broker is not required to make a diligent effort search to determine whether the full amount or type of insurance can be obtained from admitted insurers when the broker is seeking to procure or place nonadmitted insurance for an exempt commercial purchaser provided:
1. The broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight; and
2. The exempt commercial purchaser has subsequently requested in writing for the broker to procure or place such insurance from a nonadmitted insurer.
For purposes of this section, the term “exempt commercial purchaser” means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
1. The person employs or retains a qualified risk manager to negotiate insurance coverage;
2. The person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of one hundred thousand dollars ($100,000.00) in the immediately preceding twelve (12) months;
3. The person meets at least one (1) of the following criteria:
  1. The person possesses a net worth in excess of twenty million dollars ($20,000,000.00) as adjusted pursuant to paragraph (iv) of this subsection;
  2. The person generates annual revenues in excess of fifty million dollars ($50,000,000.00) as adjusted pursuant to paragraph (iv) of this subsection;
  3. The person employs more than five hundred (500) full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than one thousand (1,000) employees in the aggregate;
  4. The person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least thirty million dollars ($30,000,000.00) as adjusted pursuant to paragraph (iv) of this subsection;
  5. The person is a municipality with a population in excess of fifty thousand (50,000) individuals.
4. Effective on January 1, 2015 and every five (5) years thereafter, the amounts in subparagraphs (A), (B) and (D) of paragraph (iii) of this subsection shall be adjusted to reflect the percentage change for such five (5) year period in the consumer price index for all urban consumers published by the bureau of labor statistics of the United States department of labor.

History. Laws 1967, ch. 136, § 211; W.S. 1957, § 26.1-211; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, § 1, effective July 1, 2020.

The 2012 amendment, substituted “nonadmitted” for “unauthorized” in the introductory language of (a); added the present last sentence in (a)(ii); and added (a)(iv) through (vi), (b) and (c).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in the introductory language of (a) substituted “admitted insurers” for “authorized insurers”; in (a)(i) substituted “surplus lines broker” for “surplus line broker”; in (a)(ii) added “by the insurance producer” following “has been made,” “admitted” following “among the,” and substituted “type of insurance” for “class of insurance,” and “admitted insurers” for “authorized insurers”; and in (a)(iii)(A) substituted “admitted insurer” for “authorized insurer.”

Cited in

Gordon v. Spectrum, Inc., 981 P.2d 488, 1999 Wyo. LEXIS 92 (Wyo. 1999).

§ 26-11-105. Surplus lines transaction report.

Within forty-five (45) days after placing any surplus line insurance for an insured whose home state is this state, each surplus lines broker shall execute and file a report regarding the insurance coverage which shall be kept confidential by the commissioner, including the following:
1. The name and address of the insured;
2. The identity of the insurer or insurers;
3. A description of the subject and location of the risk;
4. The amount of premium charged for the insurance;
5. Tax allocation information detailing the portion of the premium attributable to properties, risks or exposures located in each state; and
6. Any other information as may be required by the commissioner.
The report shall be in the form and manner prescribed by the commissioner.

History. Laws 1967, ch. 136, § 212; W.S. 1957, § 26.1-212; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, § 1, effective July 1, 2020.

The 2012 amendment, redesignated the existing provisions as (a); rewrote (a) which read: “At the time of effecting any surplus line insurance the broker shall execute an affidavit in a form the commissioner prescribes or accepts, setting forth facts from which it can be determined whether the insurance is eligible for export under W.S. 26-11-104 . The broker shall file this affidavit with the commissioner within thirty (30) days after the insurance is effected.”; and added (b).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (a) substituted “in the form and manner prescribed” for “on forms prescribed.”

§ 26-11-106. Open lines for export.

The commissioner, by order, may declare eligible for export generally and without compliance with W.S. 26-11-104(a)(ii) and (iii), any type of insurance coverage or risk for which he finds, after notice and a hearing, that there is not a reasonable or adequate market among admitted insurers either as to acceptance of the risk, contract terms, premium or premium rate. The order shall continue in effect during the existence of the conditions upon which predicated, but subject to the commissioner’s earlier termination.
and (c) Repealed by Laws 2020, ch. 45, § 2.

History. Laws 1967, ch. 136, § 213; W.S. 1957, § 26.1-213; Laws 1983, ch. 190, § 1; 2001, ch. 201, § 2; 2012, ch. 37, § 2; 2020 ch. 45, §§ 1, 2, effective July 1, 2020.

The 2012 amendment, substituted “W.S. 26-11-104(a)(ii) and (iii)” for “W.S. 26-11-104(a)(i) and 26-11-105 ” in (a); in (b), substituted “report” for “memorandum,” substituted “a nonadmitted” for “an unauthorized,” and deleted “relative thereto” after “to the state.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (a) substituted “type of insurance” for “class of insurance,” “after notice and a hearing, that” for “after a hearing of which notice is given to each insurer authorized to transact those classes in this state, that,” and “admitted insurers” for “authorized insurers”; and repealed (b) and (c), which read “(b) The broker shall file with or as directed by the commissioner a report as to each coverage he places in a nonadmitted insurer, in such form and context as the commissioner requires for the identification of the coverage and determination of the tax payable to the state. (c) The broker, or a licensed agent of the authorized insurer or a broker, may also place with authorized insurers any insurance coverage made eligible for export generally under subsection (a) of this section and without regard to rate or form filings which may otherwise be applicable to the authorized insurer. As to coverages placed in an authorized insurer, the premium tax thereon shall be reported and paid by the insurer as required generally under W.S. 26-4-103 .”

§ 26-11-107. Requirements for eligible nonadmitted insurers; publication of eligible insurers.

and (b) Repealed by Laws 2012, ch. 37, § 3.
The commissioner may issue an order of ineligibility if he finds or has reason to believe that the insurer:
1. Does not meet the requirements of this section;
2. Has without just cause refused to pay claims arising under its contracts in the United States; or
3. Has otherwise conducted its affairs in such manner as to result in or threaten injury or loss to the insuring public of the United States.
The commissioner may create and maintain a list of all nonadmitted insurers that qualify as eligible nonadmitted insurers in Wyoming. To qualify for inclusion on the list, the nonadmitted insurer shall annually file an application with the commissioner and any other appropriate information as required by the commissioner. This subsection does not obligate the commissioner to determine the actual financial condition or claims practices of any nonadmitted insurer. The status of eligibility, if granted by the commissioner, indicates only that the insurer appears to be sound financially and to have satisfactory claims practices, and that the commissioner has no credible evidence to the contrary. While any such list is in effect the surplus lines broker shall restrict to the insurers listed all surplus line business he places.
A surplus lines broker shall not place coverage with a nonadmitted insurer unless, at the time of placement, the surplus lines broker has determined that the nonadmitted insurer is eligible under this section.
A nonadmitted insurer eligible to place surplus lines insurance or independently procured insurance shall:
1. Be authorized to write the kind of insurance in its domiciliary jurisdiction;
2. Have established satisfactory evidence of good repute and financial integrity; and
3. Be qualified under one (1) of the following subparagraphs:
  1. Have capital and surplus or its equivalent under the laws of its domiciliary jurisdiction which equals the greater of:
    1. The minimum capital and surplus requirements under the law of this state; or
    2. Fifteen million dollars ($15,000,000.00).
  2. The requirements of subparagraph (A) of this paragraph may be satisfied by an insurer’s possessing less than the minimum capital and surplus upon an affirmative finding of acceptability by the commissioner. The finding shall be based upon such factors as quality of management, capital and surplus of any parent company, company underwriting profit and investment income trends, market availability and company record and reputation within the industry. In no event shall the commissioner make an affirmative finding of acceptability when the nonadmitted insurer’s capital and surplus is less than four million five hundred thousand dollars ($4,500,000.00);
4. For an insurer not domiciled in the United States or its territories, the insurer is listed on the quarterly listing of alien insurers maintained by the NAIC international insurers department.
The commissioner is authorized to enter into a cooperative agreement or interstate agreement or compact to establish additional and alternative nationwide uniform eligibility requirements that shall be applicable to nonadmitted insurers domiciled in another state or territory of the United States.
Insurance policy rate and form filings applicable to admitted insurers do not apply to nonadmitted insurers issuing policies under the provisions of this chapter.

History. Laws 1967, ch. 136, § 214; W.S. 1957, § 26.1-214; Laws 1983, ch. 190, § 1; 1991, ch. 97, § 1; 2011, ch. 129, § 206; 2012, ch. 37, §§ 2, 3; 2020 ch. 45, § 1, effective July 1, 2020.

The 2011 amendment, effective July 1, 2011, in (b)(ii)(B), substituted “international insurers department” for “nonadmitted insurers information office.”

The 2012 amendment, repealed former (a) and (b) which set out the restrictions and requirements under which brokers could place insurance; substituted “nonadmitted” for “unauthorized” in (d); and added (e) through (g).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (d) rewrote the first sentence, which read “The commissioner from time to time may publish a list of all surplus lines insurers he deems eligible currently and shall mail a copy of the list to each broker at his office last of record with the commissioner,” added the second sentence, and substituted “the surplus lines broker” for “the broker”; and added (h).

Duty of agent and broker. —

Insurance agent and broker had no duty to notify insured of insurer's insolvency once policy terminated, and insured failed to present evidence that agent and broker acted negligently by knowingly procuring insurance with an unsound carrier. Gordon v. Spectrum, Inc., 981 P.2d 488, 1999 Wyo. LEXIS 92 (Wyo. 1999).

§ 26-11-108. Evidence of surplus lines insurance.

Upon placing surplus lines insurance coverage, the surplus lines broker shall promptly issue and deliver to the insured or the producer the policy, or if the policy is not then available, a certificate as described in subsection (f) of this section, cover note, binder or other evidence of the insurance. The certificate described in subsection (f) of this section, cover note, binder or other evidence of insurance shall be executed by the broker and shall show the description and location of the subject of the insurance, coverages including any material limitations other than those in standard forms, a general description of the coverages of the insurance, the premium and rate charged, taxes to be collected from the insured, the name and address of the insured and surplus lines insurer or insurers and the proportion of the entire risk assumed by each and the name and license number of the surplus lines broker.
No broker shall issue or deliver any evidence of insurance or purport to insure or represent that insurance will be or has been written by any nonadmitted insurer, unless the broker has:
1. The insurer’s prior written authority for the insurance;
2. Received information from the insurer in the regular course of business that the insurance has been granted; or
3. Received an insurance policy specifying the insurer has actually issued the insurance and delivered it to the insured.
If after the issuance and delivery of any evidence of insurance there is any change as to the insurer’s identity, or the proportion of the risk assumed by any insurer or any other material change in coverage as stated in the surplus lines broker’s original evidence of insurance or in any other material as to the insurance coverage so evidenced, the surplus lines broker shall promptly issue and deliver to the insured or the original producer an appropriate substitute for, or endorsement of the original document, accurately showing the current status of the coverage and the insurers responsible for the coverage.
Repealed by Laws 2012, ch. 37, § 3.
Any surplus lines broker who knowingly or negligently issues a false certificate or other evidence of insurance, or who fails promptly to notify the insured of any material change with respect to the insurance by delivery to the insured of a substitute certificate, cover note, binder or other evidence of insurance as provided in subsection (c) of this section, upon conviction, is subject to the penalty provided by W.S. 26-1-107 or to any greater applicable penalty otherwise provided by law.
As soon as reasonably possible after the placement of the insurance, the surplus lines broker shall deliver a copy of the policy or, if not available, a certificate of insurance to the insured or producer to replace any evidence of insurance previously issued. Each certificate or policy of insurance shall contain or have attached a complete record of all policy insuring agreements, conditions, exclusions, clauses, endorsements or any other material facts that would regularly be included in the policy.

History. Laws 1967, ch. 136, § 215; W.S. 1957, § 26.1-215; Laws 1983, ch. 190, § 1; 2012, ch. 37, §§ 2, 3.

The 2012 amendment, rewrote (a) through (c); repealed former (d) which read: “If a policy issued by the insurer is not available upon placement of the insurance and the broker has issued and delivered his certificate as provided in this section, upon the insured's request therefor, the broker, as soon as reasonably possible, shall procure from the insurer its policy evidencing the insurance and deliver the policy to the insured in replacement of the broker's certificate”; in (e), substituted “lines” for “line,” added “or other evidence,” and added “cover note, binder or other evidence of insurance”; and added (f).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-109. Required information on surplus lines contracts; duty to notify insured.

Every new or renewed insurance contract, certificate, cover note or other confirmation of insurance that is procured and delivered as a surplus lines coverage pursuant to this chapter shall have stamped or printed upon it, in at least ten (10) point bold type font, the name and address of the surplus lines broker who procured the coverage, and the following disclosure: “This insurance contract is issued pursuant to the Wyoming Nonadmitted Insurance Laws by an insurer neither licensed by nor under the jurisdiction of the Wyoming Insurance Department. In the event of insolvency of the surplus lines insurer, losses will not be paid by the Wyoming Insurance Guaranty Association or the Wyoming Life and Health Insurance Guaranty Association.”
The insurance producer shall give written notice to every person applying for insurance with a nonadmitted insurer prior to placement. The notice shall provide the disclosure required by subsection (a) of this section and any additional information required by the commissioner. The applicant shall sign and date a copy of the notice acknowledging receipt. The notice shall be in a form acceptable to the commissioner, a signed copy of which shall be maintained by the surplus lines broker with the records of the contract and available for examination by the commissioner.
1. and (ii) Repealed by Laws 2020, ch. 45, § 2.
Nothing herein contained shall nullify any agreement by any insurer to provide insurance.

History. Laws 1967, ch. 136, § 216; W.S. 1957, § 26.1-216; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, §§ 1, 2, effective July 1, 2020; 2021 ch. 149, § 1, effective July 1, 2021.

The 2012 amendment, in (a), substituted “lines” for “line,” substituted “or printed upon it, in at least ten (10) point bold type font, the name and address” for “upon it, initialed by or bearing the name,” substituted “the coverage, and” for “it,” and added the present last sentence; and added (b) and (c).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (a) substituted “Every new or renewed insurance contract, certificate, cover note or other confirmation of insurance that is procured” for “Any insurance contract procured,” “the surplus lines broker” for “the broker,” added “disclosure” following “and the following,” “Nonadmitted” preceding “Insurance Laws,” and “or the Wyoming Life and Health Guarantee Association” at the end; designated and rewrote the introductory language of (b) as (b), which read “No contract of insurance placed by a surplus lines broker under this chapter shall be binding upon the insured and no premium charged shall be due and payable until the surplus lines broker shall have notified the insured in writing, in a form acceptable to the commissioner, a copy of which shall be maintained by the surplus lines broker with the records of the contract and available for possible examination, that”; and repealed (b)(i) and (b)(ii), which read “(i) The insurer with which the surplus lines broker places the insurance is not licensed by this state and is not subject to its supervision; and (ii) In the event of the insolvency of the surplus lines insurer, losses will not be paid by the state insurance guaranty association.”

The 2021 amendment , effective July 1, 2021, substituted "Insurance Guaranty" for "Guarantee" following "Wyoming Life and Health" in (a).

§ 26-11-110. Enforceability and validity of nonadmitted insurance.

Insurance contracts procured from nonadmitted insurers in accordance with this chapter are fully valid and enforceable as to all parties and shall be given recognition in all matters and respects to the same effect as like contracts issued by admitted insurers.

History. Laws 1967, ch. 136, § 217; W.S. 1957, § 26.1-217; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, § 1, effective July 1, 2020.

The 2012 amendment, deleted “as surplus line coverage” after “contracts procured.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, substituted “nonadmitted insurers” for “unauthorized insurers” and “admitted insurers” for “authorized insurers.”

§ 26-11-111. Liability of insurer as to losses and unearned premiums; applicability of section to insurers.

As to a surplus line risk which is assumed by a nonadmitted insurer pursuant to this chapter, and if the premium thereon is received by the surplus line broker who placed the insurance, in all questions thereafter arising under the coverage as between the insurer and the insured the insurer is deemed to have received the premium due to it for that coverage. The insurer is liable to the insured for losses covered by the insurance and for unearned premiums which are payable to the insured upon cancellation of the insurance, whether or not the broker is indebted to the insurer with respect to the insurance or for any other cause.
Each nonadmitted insurer assuming a surplus line risk under this chapter subjects itself to the terms of this section.

History. Laws 1967, ch. 136, § 218; W.S. 1957, § 26.1-218; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2.

The 2012 amendment, substituted “a nonadmitted” for “an unauthorized” in (a), and made a similar change in (b).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-112. Surplus lines broker's license; authority for issuance; application; fee; applicable law.

through (d) Repealed by Laws 2012, ch. 37, § 3.
For insureds whose home state is Wyoming, a person shall not procure a contract of surplus lines insurance for the insured with a nonadmitted insurer unless the person possesses a current surplus lines insurance license issued by the commissioner.
The commissioner may issue a resident surplus lines broker license to a qualified holder of a current property and casualty producer license if:
1. The person has paid the fees set forth in W.S. 26-4-101(a);
2. The person has submitted or transmitted to the commissioner a completed uniform application;
3. The individual has taken and passed a written examination in a form prescribed by the commissioner; and
4. The person has established and continues to maintain an office in this state.
A nonresident person shall receive a nonresident surplus lines broker license pursuant to the requirements of W.S. 26-9-208 .
A business entity acting as a surplus lines broker is required to obtain a surplus lines broker license. In addition to the requirements for licensure set forth in subsections (f) and (g) of this section; before approving the application the commissioner shall find that the business entity has designated a licensed surplus lines broker responsible for the business entity’s compliance with the insurance laws, rules and regulations of this state.
The commissioner may require any documents reasonably necessary to verify the information contained in an application.
The commissioner shall waive any requirements for a nonresident surplus lines license applicant with a valid license from his home state, except the requirements imposed by this section, if the applicant’s home state awards nonresident surplus lines licenses to residents of this state on the same basis.
Repealed by Laws 2019, ch. 19, § 2.
The license and licensee are subject to chapter 9 of this title as provided in W.S. 26-9-201 .

History. Laws 1967, ch. 136, § 219; W.S. 1957, § 26.1-219; Laws 1983, ch. 190, § 1; 2001, ch. 201, § 2; 2011, ch. 103, § 2; 2012, ch. 37, §§ 2, 3; 2019 ch. 19, § 2, effective July 1, 2019.

The 2011 amendment, effective July 1, 2011, added (e).

The 2012 amendment, repealed former (a) through (d) which read: “Any person may be licensed as a surplus line broker if: (i) He is licensed as a property and casualty agent; (ii) The commissioner deems him to be competent and trustworthy with respect to the handling of surplus lines; and (iii) He maintains an office at a designated location known to and accessible by the commissioner. (b) Application for the license shall be made to the commissioner on forms he designates and furnishes. (c) The license fee shall be as specified in W.S. 26-4-101 . (d) The license and licensee are subject to chapter 9 of this code as provided in W.S. 26-9-201 .”; and added (f) through (n).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2019 amendment, effective July 1, 2019, repealed former (m), which read: "A business entity surplus lines broker license shall expire on March 31 in the second year following the issuance or renewal of the license, and an application for renewal shall be filed on or before the license expiration date upon payment of the continuation fee and compliance with other provisions of this section."

Editor's notes. —

There is no subsection (i) or (l) in this section as it appears in the printed acts.

§ 26-11-113. Surplus lines broker's license; suspension or revocation; grounds; procedure.

The commissioner may, after appropriate notice and opportunity for hearing pursuant to the Wyoming Administrative Procedure Act and in accordance with W.S. 26-2-125 through 26-2-129 , place on probation, suspend, revoke or refuse to issue or renew any surplus lines broker’s license or other license issued under this title, or may levy a civil penalty in accordance with W.S. 26-1-107 or any combination of actions for any one (1) or more of the following causes:
1. and (ii) Repealed by Laws 2012, ch. 37, § 3.
2. Removal of the resident surplus lines broker’s office from this state;
3. Removal of the resident surplus lines broker’s office accounts and records from this state during the period during which the accounts and records are required to be maintained under W.S. 26-11-116 ;
4. Failure to make and file required reports when due;
5. Failure to remit the tax on surplus lines premiums as provided in this chapter;
6. Failure to maintain a bond as required by W.S. 26-11-114 ;
7. Violation of any provision of this chapter; or
8. For any cause for which an insurance license could be denied, revoked, suspended or renewal refused under chapter 9 of this title.
The procedures provided by chapter 9 of this code for suspension or revocation of licenses apply to suspension or revocation of a surplus line broker’s license.
Upon suspending or revoking the broker’s surplus line license, the commissioner shall also suspend or revoke all other licenses of or as to the same individual under this code.
No broker whose license is suspended or revoked shall again be licensed until any fines or delinquent taxes he owes are paid, or, in case of revocation, until after expiration of one (1) year from the date revocation is final.

History. Laws 1967, ch. 136, § 220; W.S. 1957, § 26.1-220; Laws 1983, ch. 190, § 1; 2001, ch. 201, §§ 2, 5; 2012, ch. 37, §§ 2, 3.

The 2012 amendment, substituted the introductory language of (a) for “The commissioner may suspend or revoke any surplus line broker's license”; repealed former (a)(i) and (ii) pertaining to inconsistent provisions; and added (a)(iii) through (a)(ix)..

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-114. Surplus line broker's bond.

Prior to issuance of a license as a surplus line broker, the applicant shall file with the commissioner and thereafter for as long as the license remains in effect shall keep in force a bond in favor of the state of Wyoming in the penal sum of ten thousand dollars ($10,000.00), with an authorized corporate surety the commissioner approves, conditioned that he will conduct business under the license in accordance with this chapter and that he will promptly remit the taxes provided by W.S. 26-11-118 . The aggregate liability of the surety for any claims on the bond shall not exceed the penal sum of the bond. The bond shall not be terminated unless not less than thirty (30) days prior written notice thereof is given to the licensee and filed with the commissioner.

History. Laws 1967, ch. 136, § 221; W.S. 1957, § 26.1-221; Laws 1983, ch. 190, § 1; 2001, ch. 201, § 2.

§ 26-11-115. Surplus lines broker may accept and place business from producers.

A licensed surplus lines broker may accept and place surplus line business for any insurance producer licensed in this state for the kind of insurance involved and may compensate the producer therefor.

History. Laws 1967, ch. 136, § 222; W.S. 1957, § 26.1-222; Laws 1983, ch. 190, § 1; 2020 ch. 45, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, substituted “surplus lines broker” for “surplus line broker,” “insurance producer” for “insurance agent,” and “producer therefor” for “agent therefor.”

§ 26-11-116. Records of broker; contents; examination.

Each surplus lines broker shall keep in his office a full and true record of each surplus lines insurance contract placed by or through the broker for which this state is the home state of the insured, including a copy of the policy, certificate, cover note or other evidence of insurance showing each of the following applicable items:
1. Amount of the insurance, risks and perils insured;
2. Gross premium charged;
3. Return premium paid, if any;
4. Rate of premium charged upon the several items of property;
5. Effective date of contract and the terms thereof;
6. Name and address of each insurer on the direct risk and the proportion of the entire risk assumed by each insurer if less than the entire risk;
7. Name and address of the insured;
8. Brief general description of the property or risk insured and where located or to be performed;
9. Repealed by Laws 2012, ch. 37, § 3.
10. Amount of tax and other sums to be collected from the insured;
11. Allocation of taxes by state as referred to in W.S. 26-11-118 ;
12. Identity of the producer, any confirming correspondence from the insurer or its representative, and the application; and
13. Any other information the commissioner requires.
The record of each contract shall be kept open at all reasonable times to examination by the commissioner without notice for a period of not less than five (5) years following termination of the contract. In lieu of maintaining offices in this state, each nonresident surplus lines broker shall make available to the commissioner any and all records that the commissioner deems necessary for examination.

History. Laws 1967, ch. 136, § 223; W.S. 1957, § 26.1-223; Laws 1983, ch. 190, § 1; 2001, ch. 201, § 2; 2012, ch. 37, §§ 2, 3; 2016 ch. 78, § 1, effective July 1, 2016.

The 2012 amendment, rewrote the introductory language of (a), which formerly read: “Each broker shall keep in his office a full and true record of each surplus line coverage he procures, including a copy of each daily report, if any, a copy of each certificate of insurance he issues and any of the following applicable items”; added “risks and perils insured” to (a)(i); repealed former (a)(ix), which read: “Any other information the commissioner requires”; added (a)(x) through (xiii); and rewrote (b), which formerly read: “The record shall be open to examination by the commissioner at all times within five (5) years after issuance of the coverage to which it relates.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2016 amendment , effective July 1, 2016, deleted “and” at the end of (a)(viii).

Editor's notes. —

The Revisor’s Bill, Laws 2016, ch. 78, § 3 states as follows: “Any other act adopted by the Wyoming legislature during the same session in which this act is adopted shall be given precedence and shall prevail over the amendments in this act to the extent that such acts are in conflict with this act.”

§ 26-11-117. Surplus lines broker affidavit report.

Each surplus lines broker, on or before February 15, May 15, August 15 and November 15 of each year, if applicable, shall file with the commissioner an affidavit report verifying that all surplus lines insurance transacted during the preceding calendar quarter has been submitted as required by the commissioner.
The affidavit report of the surplus lines broker shall be in the form and manner the commissioner prescribes. The report shall include a statement as to the diligent efforts made to place the coverage with admitted insurers, the results thereof and any additional information required by the commissioner.
1. Repealed by Laws 2011, ch. 129, § 207.
2. through (vii) Repealed by Laws 2020, ch. 45, § 2.
An alternative reporting and tax payment period may be required by participation in a multistate compact, reciprocal agreement or clearinghouse pursuant to W.S. 26-11-123 .
Repealed by Laws 2020, ch. 45, § 2.

History. Laws 1967, ch. 136, § 224; W.S. 1957, § 26.1-224; Laws 1983, ch. 190, § 1; 2011, ch. 129, § 207; 2012, ch. 37, § 2; 2020 ch. 45, §§ 1, 2, effective July 1, 2020.

The 2011 amendment, effective July 1, 2011, repealed former (b)(i), which read: “Gross amount of each kind of insurance transacted.”

The 2012 amendment, in (a), added “surplus lines,” and substituted “report” for “statement”; in the introductory language of (b), substituted “report” for “statement,” and deleted “and furnishes” after “prescribes”; in (b), substituted “written” for “charged” in (b)(ii), added (b)(vi) and (vii), and made related changes; and added (c) and (d).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, rewrote (a), which read “Each surplus lines broker, annually, on or before March 1, shall file with the commissioner a verified report of all surplus line insurance he transacted during the preceding calendar year”; designated and rewrote the introductory language of (b) as (b), which read “The report shall be on forms the commissioner prescribes and shall show”; repealed (b)(ii) through (b)(vii), which read “(ii) Aggregate gross premiums written; (iii) Aggregate of returned premiums paid to insureds; (iv) Aggregate of net premiums; (v) Additional information the commissioner requires; (vi) Amount of aggregate tax remitted to this state; and (vii) Amount of aggregate tax due or remitted to each other state for which an allocation is made pursuant to W.S. 26-11-118 ”; in (c) substituted “An alternative reporting” for “More frequent reporting” and added “period” following “payment”; and repealed (d), which read “The report shall include the surplus lines broker's affidavit as to the diligent effort to place coverages with admitted insurers and the results thereof.”

§ 26-11-118. Tax on surplus lines.

and (b) Repealed by Laws 2011, ch. 103, § 3.
In addition to the full amount of gross premiums charged by the insurer for the insurance, every surplus lines broker shall collect and pay to the commissioner a sum equal to three percent (3%) of the gross premiums charged, less any return premiums, for surplus lines insurance provided by the surplus lines broker. Where the insurance covers properties, risks or exposures located or to be performed both in and out of Wyoming, the sum payable shall be computed based on:
1. An amount equal to three percent (3%) on that portion of the gross premiums allocated to this state; plus
2. An amount equal to the portion of the premiums allocated to other states or territories on the basis of the tax rates and fees applicable to other properties, risks or exposures located or to be performed outside of Wyoming; less
3. The amount of gross premiums allocated to this state and returned to the insured.
The tax on any portion of the premium unearned at termination of insurance having been credited by the state to the surplus lines broker shall be returned to the policyholder directly by the surplus lines broker. The surplus lines broker is prohibited from rebating, for any reason, any part of the tax.
At the time of filing an affidavit report required by W.S. 26-11-117 , each surplus lines broker shall pay the premium tax due for each calendar quarter’s business as reported, in the manner prescribed by the commissioner. An alternative reporting and payment period may be required by participation in a multistate compact, reciprocal agreement or clearinghouse pursuant to subsection (g) of this section. The surplus lines broker shall pay interest on the amount of any delinquent tax due, at the rate of nine percent (9%) per year, compounded annually, beginning the day the amount becomes delinquent.
If a surplus lines policy procured through a surplus lines broker covers properties, risks or exposures only partially located or to be performed in Wyoming, the tax due shall be computed on the portions of the premiums which are attributable to the properties, risks or exposures located or to be performed in this state. In determining the amount of premiums taxable in Wyoming, all premiums written, procured or received in Wyoming shall be considered written on properties, risks or exposures located or to be performed in Wyoming, except premiums which are properly allocated or apportioned and reported as taxable premiums of a reciprocal state.
The commissioner may participate in a multistate compact, reciprocal agreement or clearinghouse with other states for the purpose of collecting, allocating and disbursing any funds collected pursuant to subsection (c) of this section. To the extent that other states where portions of the properties, risks or exposures reside have failed to enter into a compact or reciprocal allocation procedure with Wyoming, the net premium tax collected shall be retained by this state.
The commissioner is authorized to utilize the allocation schedule included in the nonadmitted insurance multistate agreement for the purpose of allocating risk and computing the tax due on the portion of premium attributable to each risk classification and to each state where properties, risks or exposures are located.
The clearinghouse is authorized to collect from the surplus lines broker a reasonable service fee, as approved by the commissioner, as a percentage of total gross premiums of each surplus lines policy or document reported under this chapter to cover the cost of administrative services of the clearinghouse. The service fee shall be paid by the insured.

History. Laws 1967, ch. 136, § 225; W.S. 1957, 26.1-225; Laws 1971, ch. 57, § 1; 1977, ch. 24, § 1; 1983, ch. 190, § 1; 2011, ch. 103, §§ 2, 3; 2012, ch. 37, § 2; 2020 ch. 45, § 1, effective July 1, 2020.

The 2011 amendment, effective July 1, 2011, repealed former (a) and (b) which read: “Annually, on or before March 1, each broker shall remit to the commissioner a tax at the rate of three percent (3%) on the premiums, less the amount of return premium on cancelled policies, including sums collected to cover federal and state taxes on surplus line insurance, subject to tax, transacted with unauthorized insurers during the preceding calendar year as shown by his annual statement filed with the commissioner. (b) If a surplus line policy covers risks or exposures only partially in this state, the tax payable shall be computed upon the proportion of the premium which is properly allocable to the risks or exposures located in this state,” and added (c) through (g).

The 2012 amendment, substituted “broker” for “producer” throughout the section; deleted “assessments, membership fees, subscriber fees, policy fees and service fees” after “premiums charged” in (c); in (e), substituted “report” for “statement,” and added the present last sentence; and added (h).

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (e) substituted “At the time of filing an affidavit report required by W.S. 26-11-117 ” for “Annually, on or before March 1” and “each calendar quarter's business as reported, in the manner prescribed by the commissioner. An alternative reporting and payment period may be required” for “the policies written during the preceding calendar year as shown by his annual report filed with the commissioner unless more frequent reporting and payment is required”; and added (j).

§ 26-11-119. Failure to file report or pay tax; penalty.

Any licensed surplus lines broker or insured who independently procures insurance, who fails to file a report in the form and within the time required or provided for in W.S. 26-11-117 or 26-11-124 may be fined up to twenty-five dollars ($25.00) per day for each day the delinquency continues, beginning the day after the report was due until the date the report is received. The surplus lines broker or insured who independently procures insurance shall pay interest on the amount of any delinquent tax due as required by W.S. 26-11-118(e).

History. Laws 1967, ch. 136, § 226; W.S. 1957, § 26.1-226; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2.

Cross references. —

For provision as to distraint and sale of goods for taxes, see § 39-13-108 .

The 2012 amendment, rewrote the section, which formerly read: “If any broker fails to file his annual statement, or fails to remit the tax provided by W.S. 26-11-118 , prior to April 1 after the tax is due, and if in the commissioner's opinion the failure is without just cause, the broker is liable for a twenty-five dollar ($25.00) fine for each day of delinquency commencing with April 1. The tax may be collected by distraint, or the tax and fine may be recovered by an action the commissioner institutes in any court of competent jurisdiction.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-120. Service of process against nonadmitted insurer.

A nonadmitted insurer shall be sued, upon any cause of action arising in this state under any contract it issues as a nonadmitted insurance contract pursuant to this chapter, in the district court of the county in which the cause of action arises.
Legal process against the insurer in any action specified in subsection (a) of this section may be served upon the commissioner as provided in W.S. 26-3-122 . The commissioner shall immediately mail a copy of the process served to the person the insurer designates in the policy for that purpose, by prepaid registered or certified mail with return receipt requested. After service of process upon the commissioner in accordance with this section, the court has jurisdiction in personam of the insurer.
A nonadmitted insurer issuing a policy is deemed to have authorized service of process against it in the manner and to the effect provided in this section. The policy shall contain a provision stating the substance of this section and designating the person to whom the commissioner shall mail process as provided in subsection (b) of this section.

History. Laws 1967, ch. 136, § 227; W.S. 1957, § 26.1-227; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2; 2020 ch. 45, § 1, effective July 1, 2020.

The 2012 amendment, in (a), substituted “A nonadmitted” for “An unauthorized,” and substituted “nonadmitted insurance” for “surplus line.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

The 2020 amendment, effective July 1, 2020, in (c) substituted “A nonadmitted insurer” for “An unauthorized insurer.”

§ 26-11-121. Rules and regulations.

The commissioner shall make or may approve and adopt reasonable rules and regulations, consistent with this chapter, for any of the following purposes:
1. Carrying out of this chapter;
2. Establishment of procedures through which eligibility of particular proposed coverages for export is determined; and
3. Establishment, procedures and operations of any voluntary organization of brokers or others designed to assist those brokers to comply with this chapter.
The rules and regulations are subject to the procedures and carry the penalty provided by W.S. 26-2-110 .

History. Laws 1967, ch. 136, § 228; W.S. 1957, § 26.1-228; Laws 1983, ch. 190, § 1.

§ 26-11-122. Disclosure to commissioner of insurance placed with nonadmitted insurer.

Any person for whom insurance is placed with an nonadmitted insurer, upon the commissioner’s order, shall produce for his examination all policies and other documents evidencing the insurance and shall disclose to the commissioner the amount of gross premiums paid or agreed to be paid for the insurance. If the person refuses to obey the commissioner’s order, he is subject to the penalties provided by W.S. 26-1-107 for each refusal.

History. Laws 1967, ch. 136, § 230; W.S. 1957, § 26.1-230; Laws 1983, ch. 190, § 1; 2012, ch. 37, § 2.

The 2012 amendment, substituted “nonadmitted” for “unauthorized.”

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

§ 26-11-123. Interstate insurance regulatory cooperation.

To carry out the purposes of the Nonadmitted and Reinsurance Reform Act of 2010, 15 U.S.C. 8201 et seq., the commissioner may participate in a nonadmitted insurance multistate agreement or compact for the purposes of collecting, allocating and disbursing premium taxes attributable to the placement of nonadmitted insurance, providing for uniform methods of allocation and reporting among nonadmitted insurance risk classifications, sharing information among states relating to nonadmitted insurance premium taxes and providing for the determination of recommended uniform eligibility standards for nonadmitted insurers.

History. Laws 2011, ch. 103, § 1.

Effective date. —

Laws 2011, ch. 103, § 4, makes the act effective July 1, 2011.

§ 26-11-124. Independently procured insurance; duty to report and pay tax.

Each insured whose home state is this state and who independently procures, continues or renews insurance with a nonadmitted insurer, other than insurance procured through a surplus lines broker, shall, within forty-five (45) days after the date the insurance was so procured, continued or renewed, file a report with the commissioner, in the form and manner prescribed by the commissioner, showing the name and address of the insured or insureds, name and address of the insurer, the subject of insurance, a general description of the coverage, the amount of premium currently charged and additional pertinent information requested by the commissioner.
The insured is subject to the same tax and clearinghouse service fee payment requirements as apply to a surplus lines broker in W.S. 26-11-118 .
This section does not abrogate or modify, and shall not be construed or deemed to abrogate or modify any other provision of this chapter.
This section does not authorize independent procurement of accident and health or sickness or disability insurance.

History. Laws 2012, ch. 37, § 1; 2020 ch. 45, § 1, effective July 1, 2020.

The 2020 amendment, effective July 1, 2020, in (a) substituted “whose home state is this state and who independently procures” for “in this state who procures,” deleted “on properties, risks or exposures located or to be performed in whole or in part in this state” following “nonadmitted insurer,” and substituted “in the form and manner prescribed” for “upon forms prescribed”; in (b) deleted “At the time of filing the report required in subsection (a) of this section” at the beginning and substituted “tax and clearinghouse service fee payment” for “tax payment”; and added (d).

Effective date. —

Laws 2012, ch. 37, § 4, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 8, 2012.

Chapter 12 Unauthorized Insurers — Prohibitions, Process and Advertising

Article 1. General Provisions

§ 26-12-101. “Industrial insured” defined.

As used in this chapter:
1. “Industrial insured” means an insured:
  1. Which procures the insurance of any risk other than life and annuity contracts through the services of a full-time employee acting as an insurance manager or buyer or the services of a regularly and continuously retained qualified insurance consultant;
  2. Whose aggregate annual premiums for insurance on all risks total at least twenty-five thousand dollars ($25,000.00); and
  3. Which has at least twenty-five (25) full-time employees.

History. Laws 1967, ch. 136, § 231; W.S. 1957, § 26.1-231; Laws 1971, ch. 3, § 1; 1983, ch. 190, § 1.

Editor's notes. —

There is no paragraph (a)(ii) or subsection (b) in this section as it appears in the printed acts.

Cited in

Preston v. Natrona Serv., Inc., 489 P.2d 622, 1971 Wyo. LEXIS 255 (Wyo. 1971).

§ 26-12-102. Representing or aiding unauthorized insurers prohibited; exceptions.

No person in this state shall:
1. Act as agent for, or otherwise represent or aid on behalf of another, any insurer not then authorized to transact insurance in this state, in the:
  1. Solicitation, negotiation, procurement or carrying out of insurance or annuity contracts or the renewal thereof;
  2. Forwarding of applications for insurance;
  3. Dissemination of information as to coverage or rates;
  4. Inspection of risks;
  5. Fixing of rates;
  6. Investigation or adjustment of claims or losses; or
  7. Collection or forwarding of premiums.
2. In any other manner represent or assist that insurer in transacting insurance with respect to subjects of insurance resident, located or to be performed in this state.
This section does not apply to:
1. Matters the commissioner authorizes under W.S. 26-12-201 through 26-12-206 ;
2. Surplus lines insurance and other transactions for which the insurer is not required to have a certificate of authority pursuant to W.S. 26-3-102 ;
3. A licensed adjuster or attorney-at-law representing an unauthorized insurer in his professional capacity;
4. Persons in this state compensated solely by salary, who secure and furnish information for the purpose of enrolling individuals in, or issuing certificates under, or otherwise assisting in administering group life, group or blanket disability or annuity contracts lawfully solicited, issued and delivered in and pursuant to the laws of a state in which the insurer is authorized to transact business;
5. Transactions in this state involving contracts of insurance issued to one (1) or more industrial insureds.

History. Laws 1967, ch. 136, § 231; W.S. 1957, § 26.1-231; Laws 1971, ch. 3, § 1; W.S. 1977, § 26-12-101 ; Laws 1983, ch. 190, § 1; 2006, ch. 114, § 1.

The 2006 amendment, made a stylistic change in (a)(i)(G).

Laws 2006, ch. 114, § 5, makes the act effective immediately upon completion of all acts necessary for a bill to become law as provided by art. 4, § 8, Wyo. Const. Approved March 24, 2006.

Conflicting legislation. —

Cited in

Preston v. Natrona Serv., Inc., 489 P.2d 622, 1971 Wyo. LEXIS 255 (Wyo. 1971).

§ 26-12-103. Suits by unauthorized insurers prohibited.

As to transactions not permitted under W.S. 26-3-102 , no unauthorized insurer shall institute or file or cause to be instituted or filed, any suit, action or proceeding in this state to enforce any right, claim or demand arising out of any insurance transaction in this state, until the insurer obtains a certificate of authority to transact that insurance in this state.

History. Laws 1967, ch. 136, § 232; W.S. 1957, § 26.1-232; W.S. 1977, § 26-12-102 ; Laws 1983, ch. 190, § 1.

Article 2. Unauthorized Insurers Process Act

§ 26-12-201. Short title; interpretation of article.

This article constitutes and may be cited as the “Unauthorized Insurers Process Act”.
This article shall be so interpreted as to carry out its general purpose to make uniform the laws of those states which enact it.

History. Laws 1967, ch. 136, § 234; W.S. 1957, § 26.1-234; W.S. 1977, § 26-12-104; Laws 1983, ch. 190, § 1.

§ 26-12-202. Commissioner as agent for service.

Solicitation, carrying out or delivery of any insurance contract, by mail or otherwise, within this state by an unauthorized insurer, or the performance within this state of any other service or transaction connected with insurance by or on behalf of the insurer:
1. Constitutes the insurer’s appointment of the commissioner and his successors in office as its attorney, upon whom may be served all lawful process issued within this state in any action or proceeding against the insurer arising out of any such contract or transaction; and
2. Signifies the insurer’s agreement that any such service of process has the same legal effect and validity as personal service of process upon it in this state.

History. Laws 1967, ch. 136, § 235; W.S. 1957, § 26.1-235; W.S. 1977, § 26-12-105; Laws 1983, ch. 190, § 1.

Cross references. —

For other provisions as to appointment of commissioner as attorney for service of process, see §§ 26-3-121 , 26-3-122 .

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

Law reviews. —

See comment, “The ‘Long-Arm’ Statute: Wyoming Expands Jurisdiction of the State Courts over Nonresidents,” 4 Land & Water L. Rev. 235 (1969).

§ 26-12-203. Service of process generally.

Service of process upon any insurer pursuant to W.S. 26-12-202 shall be made in accordance with W.S. 26-3-122 , and service of process is sufficient if it complies with that section.
Service of process in any such action, suit or proceeding, in addition to the manner provided in subsection (a) of this section, is valid if:
1. Served upon any person within this state, who in this state on behalf of the insurer, is:
  1. Soliciting insurance;
  2. Making any contract of insurance or issuing or delivering any policies or written contracts of insurance; or
  3. Collecting or receiving any premium for insurance; and
2. Otherwise complies with W.S. 26-3-122(d).
No plaintiff or complainant is entitled to a judgment by default under this section until the expiration of thirty (30) days from the date of the filing of the affidavit of compliance.
Nothing in this section limits or abridges the right to serve any process, notice or demand upon any insurer in any other manner permitted by law.

History. Laws 1967, ch. 136, § 236; W.S. 1957, § 26.1-236; W.S. 1977, § 26-12-106; Laws 1983, ch. 190, § 1.

§ 26-12-204. Exemptions from service of process provisions.

W.S. 26-12-202 and 26-12-203 do not apply to surplus line insurance lawfully carried out under chapter 11, or to reinsurance, or to any action or proceeding against an unauthorized insurer arising out of any of the following if the policy or contract contains a provision designating the commissioner as its attorney for the acceptance of service of lawful process in any action or proceeding instituted by or on behalf of an insured or beneficiary arising out of that policy, or if the insurer enters a general appearance in any such action:
1. Wet marine and transportation insurance;
2. Insurance on subjects located, resident or to be performed wholly outside this state, or on vehicles or aircraft owned and principally garaged outside this state;
3. Insurance on property or operations of railroads engaged in interstate commerce; or
4. Insurance on aircraft or cargo of that aircraft, or against liability, other than employer’s liability, arising out of the ownership, maintenance or use of that aircraft.

History. Laws 1967, ch. 136, § 237; W.S. 1957, § 26.1-237; W.S. 1977, § 26-12-107; Laws 1983, ch. 190, § 1.

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-12-205. Defense of action by unauthorized insurer.

Before an unauthorized insurer files or causes to be filed any pleading in any action or proceeding instituted against it under W.S. 26-12-202 and 26-12-203 , that insurer shall:
1. Procure a certificate of authority to transact insurance in this state; or
2. Deposit with the clerk of the court in which the action or proceeding is pending cash or securities, or file with the clerk a bond with good and sufficient sureties, to be approved by the court, in an amount the court fixes sufficient to secure the payment of any final judgment which may be rendered in the action, except that the court may make an order dispensing with the deposit or bond if the insurer shows to the court’s satisfaction that it:
  1. Maintains in a state of the United States funds or securities sufficient and available to satisfy any final judgment which may be entered in the action or proceeding; and
  2. Will pay any final judgment entered therein without requiring suit to be brought on the judgment in the state where the funds or securities are located.
The court in any action or proceeding in which service is made in the manner provided in W.S. 26-12-203 may order a postponement as necessary to afford the defendant reasonable opportunity to comply with the provisions of subsection (a) of this section and to defend the action.
Nothing in subsection (a) of this section prevents an unauthorized insurer from filing a motion to quash or to set aside the service of any process made in the manner provided in W.S. 26-12-203 on the ground either:
1. That the unauthorized insurer did not engage in any of the acts enumerated in W.S. 26-12-202 ; or
2. That the person on whom service was made pursuant to W.S. 26-12-203 was not engaged in any of the acts enumerated in W.S. 26-12-202 .

History. Laws 1967, ch. 136, § 238; W.S. 1957, § 26.1-238; W.S. 1977, § 26-12-108; Laws 1983, ch. 190, § 1.

§ 26-12-206. Attorney fees in actions against unauthorized insurer.

In any action against an unauthorized insurer, if the insurer fails for thirty (30) days after demand prior to the commencement of the action to make payment in accordance with the terms of the contract, and it appears to the court that the refusal is without reasonable cause, the court shall allow to the plaintiff a reasonable attorney fee and include that fee in any judgment that may be rendered in the action. The fee shall not be less than one hundred dollars ($100.00). Failure of an insurer to defend any such action is prima facie evidence that its failure to make payment was without reasonable cause.

History. Laws 1967, ch. 136, § 239; W.S. 1957, § 26.1-239; W.S. 1977, § 26-12-109; Laws 1983, ch. 190, § 1.

Attorneys' fees are recoverable if there is specific statutory authority therefor. Schaefer v. Lampert Lumber Co., 591 P.2d 1225, 1979 Wyo. LEXIS 382 (Wyo. 1979).

Cited in

Preston v. Natrona Serv., Inc., 489 P.2d 622, 1971 Wyo. LEXIS 255 (Wyo. 1971).

Article 3. Unauthorized Insurers False Advertising Process Act

§ 26-12-301. Short title.

This article constitutes and may be cited as the “Unauthorized Insurers False Advertising Process Act”.

History. Laws 1967, ch. 136, § 240; W.S. 1957, § 26.1-240; W.S. 1977, § 26-12-110; Laws 1983, ch. 190, § 1.

§ 26-12-302. False advertising prohibited; notification by commissioner of misrepresentation.

No unauthorized insurer, in any manner, shall misrepresent to any person in this state as to its financial condition or the terms of any contract issued or to be issued by it or the advantages thereof, or the dividends or share of the surplus to be received thereon. If the commissioner believes that any unauthorized insurer is misrepresenting any of the items specified in this section, he shall notify the insurer and the insurance supervisory official of the insurer’s domiciliary state or province by registered or certified mail.

History. Laws 1967, ch. 136, § 241; W.S. 1957, § 26.1-241; W.S. 1977, § 26-12-111; Laws 1983, ch. 190, § 1.

§ 26-12-303. Enforcement by commissioner; penalty for violation.

If within thirty (30) days following the giving of the notice specified in W.S. 26-12-302 the insurer has not ceased dissemination of any false advertising, and if the commissioner believes that the insurer is soliciting, issuing or delivering contracts of insurance to residents of this state or collecting premiums on those contracts or performing any other transaction in connection with that insurance, and that a proceeding by him in respect to those matters would be in the public interest, he shall take action against the insurer under W.S. 26-13-117 .
If pursuant to the proceeding the commissioner finds that the dissemination of false advertising is continuing, he shall order the insurer to desist therefrom and shall mail a copy of the order by certified or registered mail to the insurer at its principal place of business last of record with the commissioner and to the insurance supervisory official of the insurer’s domiciliary state or province. Each violation after mailing of the desist order subjects the insurer to a penalty of two thousand dollars ($2,000.00), to be recovered by a civil action the commissioner brings against the insurer. Service of process upon the insurer in the action may be made upon the commissioner pursuant to W.S. 26-12-202 and 26-12-203 or in any other lawful manner.

History. Laws 1967, ch. 136, § 242; W.S. 1957, § 26.1-242; W.S. 1977, § 26-12-112; Laws 1983, ch. 190, § 1.

Chapter 13 Trade Practices and Frauds

Cross references. —

As to discrimination, etc., in connection with trade and commerce generally, see §§ 40-4-101 through 40-4-123 .

Reasonable to restrict use of non-OEM parts. —

Promulgation of a regulation prohibiting use by an insurer of non-OEM (original equipment manufacturer) parts in the repair or estimate of repair without written consent of the insured was a reasonable exercise of the authority given to the commissioner by this chapter, and set forth a reasonable requirement furthering the purpose of this title, i.e., to assure fair and equitable insurance transactions. State Farm Mut. Auto. Ins. Co. v. Wyoming Ins. Dep't, 793 P.2d 1008, 1990 Wyo. LEXIS 61 (Wyo. 1990).

Am. Jur. 2d, ALR and C.J.S. references. —

43 Am. Jur. 2d Insurance §§ 35 to 48.

Insurer's statements as to amount of dividends, accumulations, surplus or the like as binding on insurer or merely illustrative, 17 ALR3d 777.

Waiver or estoppel on basis of statements in promotional or explanatory literature issued to insureds, 36 ALR3d 541.

Doctrine of unconscionability as applied to insurance contracts, 86 ALR3d 862.

What constitutes bad faith on part of insurer rendering it liable for statutory penalty imposed for bad faith in failure to pay, or delay in paying, insured's claim, 33 ALR4th 579.

Insurer's tort liability for wrongful or negligent issuance of life policy, 37 ALR4th 972.

Liability of independent or public insurance adjuster to insured for conduct in adjusting claim, 50 ALR4th 900.

Duty of insurer to pay for independent counsel when conflict of interest exists between insured and insurer, 50 ALR4th 932.

Article 1. Unfair Trade Practices Act

No private right of action. —

The Wyoming Unfair Trade Practices Act does not provide for a private right of action. Wilson v. State Farm Mut. Auto. Ins. Co., 795 F. Supp. 1077, 1992 U.S. Dist. LEXIS 8626 (D. Wyo. 1992).

Am. Jur. 2d, ALR and C.J.S. references. —

Policy provision limiting time within which action may be brought on the policy as applicable to tort action by insured against insurer, 66 ALR4th 859.

Insurer's duty, and effect of its failure, to provide insured or payee with copy of policy or other adequate documentation of its terms, 78 ALR4th 9.

Validity of state statute prohibiting health providers from the practice of waiving patients' obligation to pay health insurance deductibles or copayments, or advertising such practice, 8 ALR5th 855.

Preemption by Longshore and Harbor Workers' Compensation Act (33 USC § 901 et seq.) of state law claims for bad-faith dealing by insurer or agent of insurer, 90 ALR Fed 723.

§ 26-13-101. Short title.

This article constitutes and may be cited as the “Unfair Trade Practices Act”.

History. Laws 1955, ch. 229, § 1; W.S. 1957, §§ 26-155, 26.1-243; Laws 1967, ch. 136, § 243; 1983, ch. 190, § 1.

§ 26-13-102. Unfair methods and deceptive acts prohibited.

No person shall engage in this state in any trade practice which is defined in this article as or is determined pursuant to this article to be an unfair method of competition or an unfair or deceptive act or practice in the business of insurance.

History. Laws 1955, ch. 229, § 3; W.S. 1957, §§ 26-158, 26.1-244; Laws 1967, ch. 136, § 244; 1983, ch. 190, § 1.

§ 26-13-103. Misrepresentations and false advertising prohibited.

No person shall:
1. Make, issue, circulate, or cause to be made, issued or circulated, any estimate, circular or statement misrepresenting the terms of any policy issued or to be issued or the benefits or advantages promised thereby or the dividends or share of the surplus to be received thereon;
2. Make any false or misleading statement as to the dividends or share of surplus previously paid on similar policies;
3. Make any misleading representation or any misrepresentation as to the financial condition of any insurer or as to the legal reserve system upon which any life insurer operates; or
4. Use any name or title of any policy or class of policies misrepresenting the true nature thereof.

History. Laws 1967, ch. 136, § 245; W.S. 1957, § 26.1-245; Laws 1983, ch. 190, § 1.

Cross references. —

For provision as to deceptive trade practices under the Wyoming Consumer Protection Act, see § 40-12-105 .

Editor's notes. —

There is no subsection (b) in this section as it appears in the printed acts.

§ 26-13-104. Home office false advertising prohibited.

No person shall make in any manner in any advertising or other communication medium any advertisement, announcement or statement containing any assertion, representation or statement with respect to the business of insurance or with respect to any person in the conduct of his insurance business, which is untrue, deceptive or misleading.

History. Laws 1967, ch. 136, § 246; W.S. 1957, § 26.1-246; Laws 1983, ch. 190, § 1.